Risk Management Blog
3,452 FOLLOWERS
A risk management blog by James Garven. James teach courses in finance and risk management, and his research involves the application of finance and economics to the analysis, pricing, and management of risk.
Risk Management Blog
1d ago
… are available at
http://fin4335.garven.com/spring2024/samplemidterm2.pdf
http://fin4335.garven.com/spring2024/samplemidterm2solutions.pdf ..read more
Risk Management Blog
1d ago
Adverse Selection Dynamics Class Problem
Adverse Selection Dynamics Class Problem Solutions ..read more
Risk Management Blog
3d ago
The adverse selection problem (also known as the “hidden information” problem) is especially easy to grasp in an insurance market setting; if you are an insurer, you need to be concerned that the worst potential risks may be those wishing to purchase insurance. However, it is important to note that adverse selection also occurs in many other market settings. Adverse selection occurs whenever one party has superior information compared with his or her counterparty. When this occurs, there is a risk that the more informed party may take advantage of the other, less informed party.
In an insuranc ..read more
Risk Management Blog
3d ago
… are available at http://fin4335.garven.com/spring2024/moralhazardclassproblem.pdf and http://fin4335.garven.com/spring2024/moralhazardclassproblemsolutions.pdf ..read more
Risk Management Blog
3d ago
… are available from the following links:
Portfolio Theory Class Problem
Portfolio Theory Class Problem Solutions ..read more
Risk Management Blog
1w ago
Finance 4335 will not meet in person on Thursday, March 21, due to ongoing health-related issues in my family. For Thursday, I am cycling back to the asymmetric information topic and asynchronously presenting, in two separate videos, class problems pertaining to moral hazard and adverse selection. As in past asynchronous lectures, class participation credit will be awarded to students who write and upload a synopsis to Canvas covering both videos; the deadline for which is Friday, March 22, by 5 pm.
On Thursday, March 21, I plan to be available for office hours via Zoom from 3:30-5 if an ..read more
Risk Management Blog
1w ago
Finance 4335 will not meet in person tomorrow, Tuesday, March 19, due to ongoing health-related issues in my family. Therefore, tomorrow’s “Capital Markets Theory” lecture will be delivered asynchronously. This lecture explores capital market theory, transitioning from our previous (Thursday, March 14) portfolio theory lecture. As in last week’s asynchronous lectures, class participation credit will be awarded to students who write and upload a lecture synopsis to Canvas.
Capital market theory examines the equilibrium pricing of individual securities, a concept better known a ..read more
Risk Management Blog
2w ago
A couple of students from Finance 4335 have reached out inquiring about the contents of a synopsis. A synopsis should encapsulate a condensed overview of the lecture. Within your overview, enumerate the subjects discussed and outline the significant principles connected to these subjects, which you learned from the video lecture. It should also be concise; no more than a page or two.
I have decided to extend the deadline for this particular assignment from 5 pm to 11:59 pm today. Additionally, you have the option to resubmit your synopsis once if you choose to do so ..read more
Risk Management Blog
2w ago
Because of health-related issues in my family, our Finance 4335 class will not meet in person next week and will proceed asynchronously on March 12th and 14th. We will continue as planned, concluding our discussion of the Asymmetric Information topic on March 12th and beginning the Portfolio Theory topic on March 14th.
I’ve uploaded lectures for both of these dates: “Asymmetric Information and Adverse Selection” on March 12th and “Portfolio Theory” on March 14th. Since Finance 4335 will not meet in person this week, I expect everyone to watch and report on both lectures online. To earn attenda ..read more
Risk Management Blog
3w ago
… are available at http://fin4335.garven.com/spring2024/ps5solutions.pdf ..read more