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AESS01
AESS01

... the sitution can be destabilized. Depositors perc who withraw thei@iids first wili be able to do so without loss or penalty; y find that the bank's capital has been eroded by marketable assets. What this means is, first, the lue of a bank (like other firms) is greater as a going concern than is in a ...
code of practice on transport infrastructure assets
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Today at Merrill Lynch, I began by reorganizing some old client files
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... • You could buy call options that would allow you to buy Apple at a strike price of, say, $210. The price of the options will be much lower than the price of the underlying stock. In addition, if the price of Apple never rises above $210, you can allow the options to expire, which limits your loss t ...
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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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