This so-called Arrow security is at the foundation of modern finance theory. It allows market participants to economize on the number of commodities they need to trade. For instance, farmers can enter ...

While the title makes this sound very science-based, this is still a financial planning article. Don’t worry if you haven’t heard of the theory of financial relativity, as it was made up while ...

Rebecca Baldridge, CFA, is an investment professional and financial writer with over 20 years' experience in the financial services industry. In addition to a decade in banking and brokerage in ...

Econometrics is limited in that it relies on the inference of raw data without connecting it to established economic theory or looking for any causal relationships. Financial modeling is the act ...

It can help in contextualizing the genesis of a model or theory and to introduce pluralism. It can support an in-depth analysis of a model which considers the evolution of its applications in real ...

Traditional finance theory would argue that the rational decision stands to make the most profit. But real investors face complex emotions and decisions about money. They don’t always optimize.

Poised at the leading edge of finance theory and practice, our faculty members produce research that is consistently recognized in flagship journals. Faculty research is consistently recognized in ...

The part of financial mathematics that is concerned with the valuation of investment decision strategies overlaps with the theory of control and optimisation, which is a traditional branch of ...