Forerunners of Modern Financial Economics Prior knowledge: Financial economics before Markowitzdonald Stabile's

Neil T. Skaggs

A chapter in A Research Annual, 2008, pp 263-270 from Emerald Group Publishing Limited

Abstract: As I write these words, hordes of financial analysts in lower Manhattan and dozens of other locations are hard at work estimating the value and risk of financial derivatives so exotic that, a few decades ago, literally no one could have conceived of them. Many – probably most – of these analysts are “rocket scientists” with graduate degrees in physics, mathematics, or statistics. Using what might have been called “supercomputers” not so long ago, they seek to create composite assets that react in particular, predictable ways to changes in the prices of equity and debt contracts. These attempts to conquer the risk-return tradeoff and to ensure a healthy return in any and all market conditions have yet to succeed completely (as a recent Federal Reserve bailout testifies), but the rocket scientists are still hard at it, seeking to maximize returns while minimizing risk.

Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.101 ... 0743-4154(08)26024-4
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:rhetzz:s0743-4154(08)26024-4

DOI: 10.1016/S0743-4154(08)26024-4

Access Statistics for this chapter

More chapters in Research in the History of Economic Thought and Methodology from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().