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  2. Financial modeling - Wikipedia

    en.wikipedia.org/wiki/Financial_modeling

    Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. [1] This is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio of a business, project , or any other investment.

  3. Causes of the Great Recession - Wikipedia

    en.wikipedia.org/wiki/Causes_of_the_Great_Recession

    Recessions. Many factors directly and indirectly serve as the causes of the Great Recession that started in 2008 with the US subprime mortgage crisis.The major causes of the initial subprime mortgage crisis and the following recession include lax lending standards contributing to the real-estate bubbles that have since burst; U.S. government housing policies; and limited regulation of non ...

  4. Mathematical finance - Wikipedia

    en.wikipedia.org/wiki/Mathematical_finance

    Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling in the financial field. In general, there exist two separate branches of finance that require advanced quantitative techniques: derivatives pricing on the one hand, and risk and portfolio ...

  5. Capital asset pricing model - Wikipedia

    en.wikipedia.org/wiki/Capital_asset_pricing_model

    An estimation of the CAPM and the security market line (purple) for the Dow Jones Industrial Average over 3 years for monthly data.. In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio.

  6. Financial risk modeling - Wikipedia

    en.wikipedia.org/wiki/Financial_risk_modeling

    Financial risk modeling is the use of formal mathematical and econometric techniques to measure, monitor and control the market risk, credit risk, and operational risk on a firm's balance sheet, on a bank's accounting ledger of tradeable financial assets, or of a fund manager's portfolio value; see Financial risk management. Risk modeling is ...

  7. IS–LM model - Wikipedia

    en.wikipedia.org/wiki/IS–LM_model

    Thus these too raise both equilibrium income and the equilibrium interest rate. Of course, changes in these variables in the opposite direction shift the IS curve in the opposite direction. The IS–LM model also allows for the role of monetary policy. If the money supply is increased, that shifts the LM curve downward or to the right, lowering ...

  8. Polymarket favors Trump to win the election. Can the site—and ...

    www.aol.com/finance/polymarket-ceo-shayne-coplan...

    In 2010, the Commodity Futures Trading Commission, pursuant to the financial reform law known as Dodd-Frank, banned derivatives or so-called event contracts that involve terrorism and other ...

  9. Monte Carlo methods in finance - Wikipedia

    en.wikipedia.org/wiki/Monte_Carlo_methods_in_finance

    In 1977, Phelim Boyle pioneered the use of simulation in derivative valuation in his seminal Journal of Financial Economics paper. [4] This article discusses typical financial problems in which Monte Carlo methods are used. It also touches on the use of so-called "quasi-random" methods such as the use of Sobol sequences.

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