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Special Report on

The standard model of finance

the standard model of finance special research report Photo by www.audi.co.uk
We have shown how the Standard Model of Finance came into existence, as each of its pillars appeared and achieved widespread success. Now we can look at a business decision and see how the Standard Model guides corporate financial managers to the correct decision. Suppose there is a petrochemical company that processes crude oil and makes it into several different plastics. The company is known for the high quality of its products and is successful. It sells to more than 175 different customers, and no customer accounts for more than 2 percent of its annual sales, so in that sense it is stable. It does not rise or fall with any ...
the various sources of uncertainty affecting their value, and then determining their average value over the range of resultant outcomes [1] . The advantage of Monte Carlo methods over other techniques increases as the dimensions (sources of uncertainty) of the problem increase. Monte Carlo methods were first introduced to finance in 1964 by David B. Hertz in "Risk Analysis in Capital Investment" ( Harvard Business Review ), discussing their application in Corporate Finance . In 1977, Phelim Boyle pioneered the use of simulation in derivative valuation in his seminal paper "Options: A Monte Carlo Approach" ( ...
REVIEWS AND OPINIONS
A Simple Application of the Standard Model
We have shown how the Standard Model of Finance came into existence, as each of its pillars appeared and achieved widespread success. Now we can look at a business decision and see how the Standard Model guides corporate financial managers to the correct decision. Suppose there is a petrochemical company that processes crude oil and makes it into several different plastics. The company is known for the high quality of its products and is successful. It sells to more than 175 different customers, and no customer accounts for more than 2 percent of its annual sales, so in that sense it is stable. It does not rise or fall with any ... market research, surveys and trends
Surprise takes final steps in overhaul of Finance Department
Surprise eliminated 14 finance positions and created 14 other posts last week, the final steps in the city's plan to reorganize the Finance Department. The department - the focus of a special audit and searing management review - has faced heavy criticism during the past year. It also was involved in two major blunders last fall: a $4.5 million budgeting error and overpayments in severance to former city workers. Fourteen employees were laid off Tuesday, Surprise officials said. Those let go could fill the new positions if they are qualified and interested in staying within the organization. It's unclear if Surprise ... market research, surveys and trends

SURVEY RESULTS FOR
THE STANDARD MODEL OF FINANCE

On the misbehaviour of markets - The price of everything
stance toward US equity markets for several years, one is conscious of the reputational risks associated with anticipating an outbreak of fierce volatility. Markets being inherently unforecastable, calling for the equivalent of a hurricane when the skies are cloudless looks and feels like going out on an extremely fragile limb. Indeed, it seems perfectly plausible to argue that with the rise of hedge funds and the huge capital inflows into the sector over recent years, developed markets and particularly stocks seem set for an indefinite period of low volatility, as all forms of risk and apparent mispricing get arbitraged away. ... industry trends, business articles and survey research
ABOUT ONE billion people globally
all of the borrowers do so to finance self-employment activities, and many ..... The Grameen Bank now has over two million borrowers, 95 percent of whom ..... In the standard model, the spon- soring agency makes an initial loan to ... industry trends, business articles and survey research
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INFORMATION RESOURCES

The standard model of finance - Merton-Black-Scholes model for ...
Brownian motions and stochastic calculus. The standard model of nance. (Implied) volatility; universality? The standard model of nance ... technology research, surveys study and trend statistics
FRB: Finance and Economics Discussion Series: Screen Reader ...
Keywords: Rare disasters, precautionary saving, portfolio choice, stock market participation, uninsurable labor income risk Abstract: The empirical evidence on stock market participation and portfolio choice defies the predictions of standard life-cycle theory. In this paper we develop and estimate a model of portfolio choice that can account for the limited stock market participation and substantial portfolio diversification seen in the data. We present three realistic extensions to the basic framework: per period fixed costs, public pension provision, and a small chance of a disastrous event in the stock market. The estimated ... technology research, surveys study and trend statistics
Public Finance in Models of Economic Growth - Public Finance in ...
the standard model of the representative, infinite-lived household, ..... One lesson for public finance is that taxes on output or income—or equivalent user ...
REAL TIME
THE STANDARD MODEL OF FINANCE
QUESTIONS AND ANSWERS
WikiAnswers - Evolution of The field of Finance
Today's Finance is still in its infancy as a science. The domain of what we know pales in comparison to what we actually know we don't know . For example, we know that our understanding of the basic mechanisms of asset valuation (stocks, real estate, gold) is limited , confused and non-operational for the most part. Who can tell and predict the value of stocks today? Investors are offered conflicting views (rational vs. irrational), quick recipes, and voodoo advice. The "pseudo" scientific mathematical models that are offered today, far from resolving real-world problems do revel in their own complexity in ...
Why is the Universe composed of matter and not antimatter? - Yahoo ...
I saw a snippet on the news this week that said US government-funded physicists at the Fermilab had concluded that the Universe was indeed made of matter and not antimatter, and that it was a striking clue to our origins. I don't have a background in astronomy nor quantum physics, so I didn't understand what it was all about. Could you explain the significance of this new scientific evidence, in layman's terms? Because the Big Bang created slightly more matter than anti-matter. Think of it like this: The Big Bang Created 100 matter particles and 99 anti-particles. The matter and anti-matter collide, ...