Tag Archives: Finance

Qualifications: Competition and property rights

Our focus so far has been on markets where rival firms can freely enter and exit, and private-property rights are clearly defined and enforced. The efficiency of market organization is, in fact, dependent on these two things: (1)competitive markets and … Continue reading

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INTEGRATING QUALITATIVE AND QUANTITATIVE INFORMATION

Textual information has remained largely outside the domain of quantitative modeling, having long been considered the domain of judgment. This is now changing as financial firms begin to tackle the problem of what is commonly called information overload; advances in … Continue reading

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Optimization

For a given exchange rate view, an optimization model can create an “efficient frontier” of hedging strategies to manage currency risk. The most efficient hedging strategy is that which is the cheapest for the most risk hedged. This is a … Continue reading

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