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1. amortization
‘Amortization’ is an accounting term meaning the allocation of a cost to several time periods. The term is derived from the Latin word for ‘death’ and ...
2. arbitrage
The absence of arbitrage is the unifying concept for much of finance. Absence of arbitrage is more general than equilibrium because it does not require ...
3. arbitrage pricing theory
Focusing on asset returns governed by a factor structure, the APT is a one-period model, in which preclusion of arbitrage over static portfolios of these ...
4. bandit problems
The multi-armed bandit problem is a statistical decision model of an agent trying to optimize his decisions while improving his information at the same ...
5. bankruptcy law, economics of corporate and personal
Bankruptcy is the legal process whereby financially distressed firms, individuals, and occasionally governments resolve their debts. The bankruptcy process ...
6. bonds
A bond is commonly understood to be a debt instrument in which a borrower receives an advance of funds and contracts to make future payments of interest ...
7. bubbles
Bubbles refer to asset prices that exceed an asset's fundamental value because current owners believe they can resell the asset at an even higher price. ...
8. bubbles in history
A bubble may be defined loosely as a sharp rise in price of an asset or a range of assets in a continuous process, with the initial rise generating expectations ...
9. capital asset pricing model
Two general approaches to the problem of valuing assets under uncertainty may be distinguished. The first approach relies on arbitrage arguments of one ...
10. case-based decision theory
Case-based decision theory was developed by Gilboa and Schmeidler. This article describes the framework and lays out the axiomatic foundations of the ...
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