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Market Volatility: a Friend of Active Management?
Market Volatility: a Friend of Active Management?

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... In unstable market environments, it is important to stick to a wellconsidered investment plan. There are substantial long-term benefits in buying securities and holding a diversified investment portfolio instead of trading stocks or mutual funds frequently. In fact, frequent trading can reduce your ...
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... A foreign Investor (Company Z1) invested in two mines in South Africa – Mine A and Mine B. The Foreign Investor created a local subsidiary (Company Y) in which the shares were held. The Foreign Investor also created an offshore Trading Company (Company Z2) to market the commodities from the two mine ...
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... recognize that our knowledge is limited, our models incomplete, and there is a risk that they might be wrong. Robust regulation should take into account that possibility and particularly focus on the worst consequences if that is the case. It should not be designed to protect the economic and financ ...
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... {NOTE: Total Fixed Cost equals Operating Expense + Invested Capital (if included)} -- If you look closely at the BE formula, it is literally a calculation for getting a “fixed cost monkey” off your company’s back * After identifying “how much to sell (not just produce) to become profitable, it is es ...
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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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