4 Answered Questions for the topic financial economics

Financial Economics Business Macroeconomics Theory


Consequences of a positive uncovered interest rate parity (UIP) spread for an emerging market economy?

Empirically we observe that the uncovered interest rate parity (UIP) does not hold; in fact the exchange rate adjusted return on an emerging market bond is higher than the return on US bonds; I... more
Financial Economics Finance Mathematical Economics


Prove that variance of a portfolio cannot exceed variance of individual assets?

When reading on Markowitz's portfolio theory, I stumbled across the fact that in a market with two risky assets, if no short selling is not allowed, the variance of a portfolio consisting of the... more
Financial Economics Business Finance Macroeconomics


Why does the profit reaches its maximum value at the equilibrium point?

When we talk about marginal cost and marginal benefit/cost, why does the equilibrium point is the most convenient for the production of a product. If the marginal cost and the marginal... more
Financial Economics Finance Probability Bonds


Negative probabilities - Can we have negative payments in bonds?

In [Half of a Coin: Negative Probabilities](http://citeseerx.ist.psu.edu/viewdoc/download?doi=, the author mentions bond duration.Suppose we have payments... more

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