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Corporate Finance
Corporate Finance

Market Volatility
Market Volatility

... demonstrated that markets do recover and, with the benefit of hindsight, central banks and governments are by far in a better position to tackle the problems at hand and this has been evidenced with Fannie Mae and Freddie Mac for example. We are still of the belief that the bottoming process is like ...
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Document

... • A security is a claim on the issuer’s future income or assets. • A bond is a debt security that promises to make payments periodically for a specified period of time. • An interest rate is the cost of borrowing or the price paid for the rental of funds. • There are many interest rates. ...
Fin 129
Fin 129

... the level of interest rate risk faced by a FI. If a firm is asset sensitive is it’s GAP positive or negative? What if it is Liability sensitive? How does the level of static GAP relate to the net interest income of the firm? Would you expect a commercial bank to be asset or liability sensitive when ...
Sample Chapter
Sample Chapter

Measuring Systematic Risk for Crop and Livestock Producers
Measuring Systematic Risk for Crop and Livestock Producers

... Much has been said about risk in agriculture in recent months, as unprecedented price fluctuations in both input and outputs have producers looking for ways to protect themselves. It is common to think of risk in terms of variability in revenue, which reflects price and production risk. While revenu ...
Hot Topics presentation March 2014
Hot Topics presentation March 2014

... To answer the question... Impossible to categorically determine whether life stage strategies have indeed ‘delivered appropriate results in terms of all their objectives’ However, what we can say is that in a risk cognisant world, developing our investment strategy such that at inception its optimi ...
Second Quarter 2016 Securities Markets Commentary Index
Second Quarter 2016 Securities Markets Commentary Index

... numerous threats only to maintain its bullish slant. Both the S&P 500 and the Dow indexes ended the quarter above their 50-day and 200-day moving averages. We note that both indexes had fallen below these indicators only three days prior to the end of the quarter owing to the Brexit vote. The resili ...
Introduction
Introduction

... The aging of the population raises the burden of financing the existing pay-asyou-go, national pension (old-age security) systems, because there is a relatively falling number of workers, that have to bear the cost of paying pensions to a relatively rising number of retirees. Against this backdrop, ...
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Document

... of defaultable term-structure started with Merton (1974). In this paper Merton adopt the Black and Scholes option pricing model to the pricing of risky discount bond. Under the assumption of a constant interest rates economy, Merton’s model yields important insight into the determinants of the risk ...
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Trading Mandate Catalogue
Trading Mandate Catalogue

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... • Three criteria (of core competencies) that lead to the creation of value and synergy - Core competencies must be difficult for competitors to imitate or find substitutes for • Easily imitated or replicated core competencies are not a sound basis for sustainable advantages • Specialized technical s ...
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Dave Wajsgras bio January 2016

... Wajsgras is a member of the Kogod Advisory Council for the Kogod School of Business as well as a member of the Kogod Cybersecurity Governance Center Advisory Committee at American University in Washington, D.C. He also serves on the board of trustees of the Lahey Clinic Foundation in Burlington, Mas ...
Answers to Midterm 3040A
Answers to Midterm 3040A

... 14- In a common size statement, the balance sheet may be expressed as a percentage of ____________ while the income statement may be expressed as a percentage of ...
The crisis and monetary policy: what we learned and
The crisis and monetary policy: what we learned and

... damage can result if financial market participants do not ...
Derivatives and Risk Management
Derivatives and Risk Management

... a. A derivative is an indirect claim security that derives its value, in whole or in part, by the market price (or interest rate) of some other security (or market). Derivatives include options, interest rate futures, exchange rate futures, commodity futures, and swaps. b. According to COSO, enterpr ...
Coming to Consensus: A Delphi Study to Identify the
Coming to Consensus: A Delphi Study to Identify the

... • College is the first opportunity for young adults to make significant financial decisions on their own. (Shim, Serido, & Xiao, 2009) • The concern among researchers, educators, and policymakers: • College students may not have acceptable levels of financial knowledge and skills • College students ...
Econ 420
Econ 420

... – tie the compensation of the top managers of a firm to the share price of the firm thereby aligning the interests of the top managers with those of the equity holders. – Stock options are used because the market price of shares accurately captures how the firm is doing. Market prices are set by rat ...
Market integration in developed and emerging markets
Market integration in developed and emerging markets

NBER WORKING PAPER SERIES ASSET PRICE INFLATION AND MONETARY POLICY
NBER WORKING PAPER SERIES ASSET PRICE INFLATION AND MONETARY POLICY

... held to be warranted. The ultimate effect of forbearance, however, may inflict larger costs than when a timely response by supervisors prevents institutional weakness. There may be fewer pitfalls for the authorities in trying to determine whether asset price inflation is damaging from paying attenti ...
Applications of the Derivative
Applications of the Derivative

... essentially the slope of the tangent line as it travels along the curve.  For every point on f(x) that has a horizontal tangent line, f’(x) will cross the x axis at that same point.  If the slope of the tangent line is positive and increasing for f(x), f’(x) will be positive (and vice versa)  f’( ...
1 The Aftermath of the Crisis: Regulation, Supervision and the Role
1 The Aftermath of the Crisis: Regulation, Supervision and the Role

... has once again become a major concern of policy makers; central banks are being heavily involved in this endeavour. A clear need has emerged for a substantial overhaul in financial regulation and supervision, also considering that the financial system of tomorrow will most likely be rather different ...
Infrastructure drive raises price concerns 4th November
Infrastructure drive raises price concerns 4th November

Proposal - Berkeley Statistics
Proposal - Berkeley Statistics

... the technical analysis metric on the days leading up to the report  Whether the earning release date is also a random walk – or whether the change of a positive / negative earnings is 50%  Conclude with whether a certain finding may be based on insider trading (pessimistic) or simply investor expe ...
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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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