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Disappointment Aversion in Asset Allocation
Disappointment Aversion in Asset Allocation

0000930413-12-002776 - Investor Relations
0000930413-12-002776 - Investor Relations

... has changed, there are no changes to the components or amounts that are recognized in net income or other comprehensive income under current accounting guidance. As a result, the adoption of this new rule did not impact the Company’s results of operations, cash flows, or financial position. Principl ...
The Lessons from the Housing Market Crisis Elias Karakitsos
The Lessons from the Housing Market Crisis Elias Karakitsos

... and concealed adverse macroeconomic developments, such as the decline in multi-factor productivity, while in the downswing it has been the key driver of the unravelling recession that has turned out to be one of the worst since the Great Depression. The boom in the housing market was financed not by ...
forecasting the romanian financial system stability using a stochastic
forecasting the romanian financial system stability using a stochastic

... Institute of Economic Forecasting other is to support the implementation of the chosen strategy to achieve the goal in real time (Borio and Drehmann, 2008). There are several techniques used to assess systemic stability, each of them presenting both advantages and inconveniences related to the capa ...
Consolidated Profit and Loss Account
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The Equity Premium Stock and Bond Returns since 1802
The Equity Premium Stock and Bond Returns since 1802

Chapter 12: The Cost of Capital
Chapter 12: The Cost of Capital

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A financial derivative is a contract whose return depends on the
A financial derivative is a contract whose return depends on the

... value at time t (in dollars). For this equation to hold, the asset’s cash ‡ows and their occurrence dates have to be known in advance with certainty. Exercise: Can a Treasury bond be evaluated using the PV principle? Give the assumptions under which a stock can be evaluated using the PV principle. D ...
2 January 2008
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... investment company, today confirmed its participation in the public offer for all bearer shares of Absolute Private Equity, Ltd. (“Absolute”), alongside secondary funds managed by HarbourVest Partners, LLC. The preliminary final result, announced today, indicates that 98.68% of Absolute shareholders ...
pdf
pdf

Optimal Pricing and Return Policies for Perishable Commodities
Optimal Pricing and Return Policies for Perishable Commodities

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Equilibrium Commodity Prices with Irreversible Investment and Non-Linear Technologies ∗
Equilibrium Commodity Prices with Irreversible Investment and Non-Linear Technologies ∗

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Estimating and interpreting probability density functions
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Over-the-counter loans, adverse selection, and stigma in the
Over-the-counter loans, adverse selection, and stigma in the

... features, can be regarded as an attempt to limit the possibility of stigma associated with accessing this source of central bank liquidity.2 In this paper, we will discuss specific conditions under which stigma may arise in the context of a formal model. We believe that the resulting insights are us ...
Value drivers
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Volatility and Fixed Income Asset Class Comparison
Volatility and Fixed Income Asset Class Comparison

Jonathan Eaton Working
Jonathan Eaton Working

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No Slide Title
No Slide Title

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Climate change risks
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Chapter 2
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Banks` Sovereign Exposures and the Feedback Loop
Banks` Sovereign Exposures and the Feedback Loop

... This is clearly shown by the example of Italy, where the debt to GDP ratio has risen by 33 percentage points since 2007. Back-of-the-envelope calculations show that if Italian real GDP had since grown at a similar rate as in the previous ten years and the deflator had risen in line with the euro ar ...
A Common Jump Factor Stochastic Volatility Model
A Common Jump Factor Stochastic Volatility Model

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The Federal Reserve`s Primary Dealer Credit Facility
The Federal Reserve`s Primary Dealer Credit Facility

... The PDCF program is based on the triparty repo legal and operational infrastructure that the Federal Reserve uses to conduct its repo operations. (See Box 3 for a discussion of triparty repo agreements.) To access the PDCF, primary dealersa communicate a demand for overnight funding to their clearin ...
P a g e 1
P a g e 1

... their projects. Moreover, they do so with considerable efficiency. Thus, depositors and investors avoid having to do this job themselves. This function makes banks unique: Banks extend long-term credit and raise short-term debt. We call this banks' maturity transformation. But this transformation al ...
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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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