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Ch 16
Ch 16

catalytic first-loss capital - Global Impact Investing Network
catalytic first-loss capital - Global Impact Investing Network

... are misperceiving risk. The primary value of CFLC, in these cases, is to draw those investors into the market so that they will gain a firsthand understanding of the financial viability of investing in these sectors and/or geographies. The Provider is counting on this demonstration effect: if the in ...
A Model of Competitive Stock Trading Volume Jiang Wang
A Model of Competitive Stock Trading Volume Jiang Wang

... between volume and prices, one can study how the nature of investor heterogeneity determines the behavior of asset prices. In this paper, I develop an equilibrium model of stock trading in which investors are heterogeneous in their information and private investment opportunities and rationally trad ...
Responding to the Stubbornly Steep U.S. Treasury Yield Curve
Responding to the Stubbornly Steep U.S. Treasury Yield Curve

NBER WORKING PAPER SERIES EAST ASIA AND GLOBAL IMBALANCES:
NBER WORKING PAPER SERIES EAST ASIA AND GLOBAL IMBALANCES:

... Most directly related to the issue at hand, financial openness can affect saving and investment determination, and hence capital flows across borders. According to the global saving glut thesis, financial development coupled with comprehensive financial liberalization policies in East Asia would mit ...
SAVINGS AND INNOVATION IN THE US CAPITAL MARKET
SAVINGS AND INNOVATION IN THE US CAPITAL MARKET

... in venture capital funds is done by defined benefit plans). It makes financial sense to extend the portfolio to all types of options, real and financial. Investment in innovative technology with a potential for revolutionary change makes sense from a macroeconomic point of view as well. Breeden and ...
Is the Growth-value Anomaly Related to the Asset Growth Anomaly?
Is the Growth-value Anomaly Related to the Asset Growth Anomaly?

... Based on the q-theory of investment, Zhang (2005) constructs a model in which time variation in risk and return affects capital investments. Specifically, lower expected return leads to higher marginal q or benefit of investments, more positive NPV projects, and hence investments. As lower book-to-m ...
LOWER PARTIAL MOMENTS AS A MEASURE OF VULNERABILITY
LOWER PARTIAL MOMENTS AS A MEASURE OF VULNERABILITY

... common notion of risk as a negative, undesired characteristic of an alternative (Brogan and  Stidham  2005,  Albrecht  and  Maurer  2002,  Unser  2000),  which  is  also  in  line  with  the  focus  axiom. Further, LPMs have a number of convenient characteristics. First, they are consistent  to  th ...
The Trinomial Asset Pricing Model
The Trinomial Asset Pricing Model

... most applied methods for pricing options, because of its ability to price European and American derivatives by a simple algorithmic procedure. Eventually the trinomial model was formulated, as an extension of the work of Cox, Ross, and Rubinstein. It was first introduced in 1986 by Phelim Boyle [3] ...
Documentos de Trabajo - Facultad de Ciencias Sociales
Documentos de Trabajo - Facultad de Ciencias Sociales

Bank of England External MPC Unit Discussion Paper No. 46
Bank of England External MPC Unit Discussion Paper No. 46

... It is a privilege to write a paper in honor of Frank Hahn. Hahn was a talented economist who wrote on a range of topics central to macroeconomics today. He emphasized the importance of focusing on general equilibrium, and how this could improve our understanding relative to partial equilibrium anal ...
Value-at-Risk (VaR)
Value-at-Risk (VaR)

united states securities and exchange commission
united states securities and exchange commission

... tax rates and our joint venture prospects; the risk of unfavorable currency exchange rates; our future guidance may be incorrect; the global economic weakness may be more severe or last longer than we currently anticipated; and the impact of competition and other risk factors relating to our industr ...
2013 - Central Bank of Sri Lanka
2013 - Central Bank of Sri Lanka

On the two-times differentiability of the value functions
On the two-times differentiability of the value functions

... and the products X(x)Y  (y), X  (x)Y (y) and X  (x)Y  (y) are martingales under P. R EMARK 2. According to (28), the wealth process X  (x) describes how the agent invests a small additional unit of capital. Note that, while the construction of the processes X  (x) and Y  (y) by (24) and (25) ...
Optimal consumption and portfolio choice with borrowing constraints
Optimal consumption and portfolio choice with borrowing constraints

Advanced Financial Accounting: Chapter 2
Advanced Financial Accounting: Chapter 2

Plunder Blunder Cover Mech.indd
Plunder Blunder Cover Mech.indd

... families face the loss of their homes, and tens of millions have seen their life’s savings evaporate with the plunge in home prices, most of the financiers responsible for this disaster remain fabulously rich. The failure was also in the economics profession. With extremely few exceptions, economist ...
NBER WORKING PAPER SERIES Čihák Martin
NBER WORKING PAPER SERIES Čihák Martin

... conclude that the preponderance of evidence suggests a positive, first-order relationship between financial development and economic growth. In other words, well-functioning financial systems play an independent role in promoting long-run economic growth: economies with better-developed financial sy ...
Liquidity, Investor-Level Tax Rates, and Expected Rates of
Liquidity, Investor-Level Tax Rates, and Expected Rates of

... that investors take into consideration the e¤ect of their demand on price. Speci…cally, and following Kyle (1989) and Lambert et al. (2012), we characterize imperfect competition as the self-sustaining belief by each investor that he faces an upwardly-sloping price curve for …rm shares. In particula ...
On the Consequences of Demographic Change for Rates of Returns
On the Consequences of Demographic Change for Rates of Returns

... the OECD, Börsch-Supan et al. (2005) and Fehr et al. (2005) investigate the impact of population aging on the viability of the social security system and its reform. Building on earlier work by Brooks (2003) who employs a simple four period OLG model, Henriksen (2002), Feroli (2003) and Domeij and F ...
New rules for money market funds
New rules for money market funds

... NAV that fluctuates from day to day. They must also round the NAV to the fourth decimal place (e.g., $1.0000). In addition, the amendments state that institutional MMFs must be invested using the same risk-limiting conditions included in the current regulations, which restrict investments to short-t ...
Investment Style and Process - Qualified Financial Services
Investment Style and Process - Qualified Financial Services

... be eligible for inclusion in composites as defined by the firm’s policies. Numbers may not equal 100% due to rounding. AUM may also include advisory accounts with or without trading authority. In addition, the Firm may provide asset allocation advisory services, and if the assets are not allocated t ...
Structured Reinsurance - National Association of Insurance
Structured Reinsurance - National Association of Insurance

... Allows for more accurate determination of limit to be purchased due to reduced volatility i.e. portfolio effect works for the customer Removes uncertainty from planning process since limit is guaranteed Tailored to customer’s business, including “difficult to protect risks” ...
Ch10 - U of L Class Index
Ch10 - U of L Class Index

... and the market expects this • If management does not increase the dividend as expected, the market views it as bad news ...
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Financial economics

Financial economics is the branch of economics characterized by a ""concentration on monetary activities"", in which ""money of one type or another is likely to appear on both sides of a trade"". Its concern is thus the interrelation of financial variables, such as prices, interest rates and shares, as opposed to those concerning the real economy. It has two main areas of focus: asset pricing (or ""investment theory"") and corporate finance; the first being the perspective of providers of capital and the second of users of capital.The subject is concerned with ""the allocation and deployment of economic resources, both spatially and across time, in an uncertain environment"". It therefore centers on decision making under uncertainty in the context of the financial markets, and the resultant economic and financial models and principles, and is concerned with deriving testable or policy implications from acceptable assumptions. It is built on the foundations of microeconomics and decision theory.Financial econometrics is the branch of financial economics that uses econometric techniques to parameterise these relationships. Mathematical finance is related in that it will derive and extend the mathematical or numerical models suggested by financial economics. Note though that the emphasis there is mathematical consistency, as opposed to compatibility with economic theory.Financial economics is usually taught at the postgraduate level; see Master of Financial Economics. Recently, specialist undergraduate degrees are offered in the discipline.Note that this article provides an overview and survey of the field: for derivations and more technical discussion, see the specific articles linked.
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