Financial Economics
Sunday, April 6, 2008 | | |The economy is the financial arm of the economy to study the interdependence of financial variables such as prices, interest rates and shares, as opposed to those concerning the real economy. The financial economy focuses on the influences of real economic variables on the financial, unlike pure finance.
He studied:
* Assessment - Determining the fair value of an asset
o How is risky assets? (identification of assets appropriate discount rate)
o What cash flows will it produce? (discounted cash flow)
o How does the market to compare the prices of similar assets? (evaluation report)
o Does the cash flow depends on certain other assets or an event? (derivatives, contingent valuation of the claim)
* The financial markets and instruments
o commodities - themes
o Actions - subjects
o Bonds - subjects
o Money market instruments-themes
o Derivatives - subjects
* Financial institutions and regulations
The financial econometrics is the financial arm of the economy that uses econometric techniques to set the reports.
He studied:
* Assessment - Determining the fair value of an asset
o How is risky assets? (identification of assets appropriate discount rate)
o What cash flows will it produce? (discounted cash flow)
o How does the market to compare the prices of similar assets? (evaluation report)
o Does the cash flow depends on certain other assets or an event? (derivatives, contingent valuation of the claim)
* The financial markets and instruments
o commodities - themes
o Actions - subjects
o Bonds - subjects
o Money market instruments-themes
o Derivatives - subjects
* Financial institutions and regulations
The financial econometrics is the financial arm of the economy that uses econometric techniques to set the reports.