What is Securitization?
Securitization is the procedure where an issuer designs a marketable financial instrument by merging or pooling vario...
Euler’s Theorem
The generalization of Fermat's theorem is known as Euler's theorem.
Systemic Risk
Systemic risk refers to the potential risk of a collapse of the entire financial system due to one factor or a combin...
What is Idiosyncratic Risk?
Idiosyncratic risk refers to the inherent factors that can negatively impact individual securities or a very specific...
Autocorrelation
Autocorrelation is the measure calculated to find out that to which degree a variable is correlated to its past values.
What is Expected Value?
The Expected Value is the weighted average of the possible outcomes of a random variable, where the weights are the p...
What is a Forward Contract?
A forward contract is a non-standardised contract between two counterparties without the involvement of an exchange.
What is Standard Error?
The Standard deviation of the mean is known as a Standard Error.
What are Put Options?
Put options gives owner the right, but not the obligation, to sell the underlying assets against the premium paid at ...
Value at Risk – Methods with Example
Value at risk is a statistic that quantifies the extent of possible financial losses within a firm, portfolio, or pos...