TAILIEUCHUNG - Lecture Money, banking, and financial markets: Chapter 5 - Stephen G. Cecchetti, Kermit L. Schoenholtz

Chapter 5 - Understanding risk. In this chapter we will: Learn to measure risk and assess whether it will increase or decrease, understand why changes in risk lead to changes in the demand for a particular financial instrument, understand why change in risk lead to corresponding changes in the price of those instruments. | Chapter Five 5- Introduction Risk cannot be avoided. Everyday decisions involve financial and economic risk. How much car insurance should I buy? Should I refinance my mortgage now or later? We must have the capacity to measure risk to calculate a fair price for transferring risk. 5- Outline In this chapter we will: Learn to measure risk and assess whether it will increase or decrease. Understand why changes in risk lead to changes in the demand for a particular financial instrument. Understand why change in risk lead to corresponding changes in the price of those instruments. 5- Defining Risk According to the dictionary, risk is “the possibility of loss or injury.” For outcomes of financial and economic decisions, we need a different definition. Risk is a measure of uncertainty about the future payoff to an investment, measured over some time horizon and relative to a benchmark. 5- Defining Risk Risk is a measure that can be quantified. The riskier the

• Ngân hàng - Tín dụng
• Financial markets
• Financial system
• Financial institutions
• Central banks
• Monetary policy
• Expected value
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Lecture Financial markets and institutions
• Financial institutions markets
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation