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Corporate Finance: Modigliani and Miller
Corporate Finance: Modigliani and Miller

... across firms in the same industry and use the rule: "buy firms with higher EPS-price ratios"  The logic: stocks with higher EPS-price ratios yield a higher returns and must be better  Since firms are in the same industry, their risks are presumably the same  What is ignored is financial risk: lev ...
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Titel Titel 2
Titel Titel 2

... Ageing will lead to increasing supply of stocks and bonds, because of dissaving in retirement age Higher public deficit due to increasing expenditure for elderly persons will lead to growth in the supply of bonds Lower potential growth will lead to slowdown of the development of stock markets ...
FRBSF  L CONOMIC
FRBSF L CONOMIC

... gain or loss from selling the share. The same formula applies to owning a house or a bond, or any asset for that matter. For the house, the dividend payment is the service flow the owner derives from living in it or renting it out. For the bond, it is the coupon payment. According to this theory, th ...
sygnia skeleton worldwide flexible fund
sygnia skeleton worldwide flexible fund

... driven by weak global economic fundamentals. The ECB trimmed its growth forecasts for the Eurozone to 1.4% this year and 1.7% in 2017. The US Fed cut its US growth expectations to 2.2% in 2016 and 2.1% in 2017. The Bank of Japan warned of a bleak outlook for the economy, while China introduced targe ...
Financial crisis
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... required to repay the loans. But it also depends on the value of i’s claims against other agents in the economy, which again depend on the value of their claims against others and so on. Let us write the system of mutual claims, in a shortcut, as L. So we can write Ai =Ai (L, P, w) and Li = f( Di, ...
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Paulson`s plan was not a true solution to the crisis

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The Rally that started on the Ides of March 09

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Who are the end-users in the OTC derivatives market?

... the investors in the majority of trades. Derivatives may thus help the efficient distribution of risk in financial markets. Derivatives, in a nutshell, allow investors to manage their business risks efficiently and improve the price discovery of the underlying assets. They usually have bespoke featu ...
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Slide 1

...  Underdeveloped local institutional investor base and regulatory impediments (over-regulation, regulatory cap on corporate bond rates) hamper development.  Special working group established in February 2004 to improve regulatory practices.  But, until market system and corporate governance improv ...
The Final Word
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... time decisions are taken. • Institutional risk: unforeseen government actions and change in rules. • Financial risk: interest rates rise; loans become unavailable. • Other risks, as the rapid loss of confidence due to food safety concern. ...
The Real estate market: types of property and criteria for appraisal
The Real estate market: types of property and criteria for appraisal

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What market features reduce uncertainty?

... Markets also provide liquidity to traders  Buyers and sellers do not always arrive simultaneously – the time dimension of trading  Quantity demanded may not instantaneously equal quantity supplied – the size dimension  Ease of trading may be periodic – buyers and sellers may disappear  A partic ...
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MIDLANDS STATE UNIVERSITY FACULTY OF COMMERCE

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FRBSF E L CONOMIC ETTER
FRBSF E L CONOMIC ETTER

... of San Francisco or of the Board of Governors of the Federal Reserve System.This publication is edited by Judith Goff, with the assistance of Anita Todd. Permission to reprint portions of articles or whole articles must be obtained in writing. Permission to photocopy is unrestricted. Please send edi ...
Stocks and Bonds - NUS Investment Society
Stocks and Bonds - NUS Investment Society

... if we assume dividends growth at constant rate g r  g  ...
Quarterly Investment Letter
Quarterly Investment Letter

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Some economic principles for climate finance
Some economic principles for climate finance

... uniform emissions pricing around the world. • Dependent on the credibility of the long-term international climate policy framework • Public finance is warranted by a range of market – and policy – failures associated with climate change and its mitigation. ...
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1 - CGC

finding value in bonds. - The Institute of Financial Planning
finding value in bonds. - The Institute of Financial Planning

... the UK and US have been extended in recent months, while the European Central Bank has now outlined its intention to purchase bonds in bulk. While these asset purchases are of course ...
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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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