Financial Economics

This class was created by Brainscape user Ioanna Stylianou. Visit their profile to learn more about the creator.

Decks in this class (17)

Chapter 3 - Stochastic Dominance And Behavioural Finance
Absolute dominance,
First order stochastic dominance,
Second order stochastic dominance
13  cards
Chapter 2 - Utility Theory
Utility,
Preference function or utility fu...,
The expected utility theorem
24  cards
Chapter 4 - Measures Of Investment Risk
Variance of return,
Advantages of variance of return ...,
Why is variance of return not the...
19  cards
Chapter 5 - Portfolio Theory
Mean variance portfolio theory,
Two parts the application of the ...,
Assumptions underlying mean varia...
23  cards
Chapter 6 - Models Of Asset Returns
3 types of multifactor model,
Multifactor model of security ret...,
The single index model
7  cards
Chapter 7 - Asset Pricing Models
Two asset pricing models,
Assumptions of the camp,
Results of the camp
16  cards
Chapter 8 - Brownian Motion And Martingales
Brownian motion intro,
Martingale,
Importance of martingales for mod...
10  cards
Chapter 9 - Stochastic Calculus And Ito Processes
Describe the problem in evaluatin...,
Give possible reasons why brownia...,
Describe what is involved in fitt...
3  cards
Chapter 10 - Stochastic Models Of Security Prices
Evidence against the continuous t...,
Cross sectional property,
Longitudinal property
7  cards
Chapter 11 - Introduction To The Valuation Of Derivative Securities
Derivative,
Arbitrage opportunity,
Principle of no arbitrage
16  cards
Chapter 12 - The Greeks
The greeks,
Delta hedging,
Static vs dynamic hedging
10  cards
Chapter 13 - The Binomial Model
Binomial model assumptions,
Replicating portfolio,
Hedging portfolio
5  cards
Chapter 14 - The Black-Scholes Option Pricing Formula
Assumptions of black scholes,
Validity of assumptions,
Conditions for fair derivative pr...
3  cards
Chapter 15 - The 5-step Method In Discrete Time
Previsible,
Self financing portfolio,
Replicating portfolio
6  cards
Chapter 17 - The Term Structure Of Interest Rates
Main uses of the term structure i...,
Desirable characteristics of a te...,
Explain what is meant by term str...
11  cards
Chapter 18 - Credit Risk
Credit event,
Recovery rate,
Structural models
12  cards
Chapter 16 - The 5-step method in continuous time
Martingale approach vs pde approach
1  cards

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Financial Economics

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