Tag: models
Quant Fund
What is 'Quant Fund' An investment fund that selects securities based on quantitative analysis. In a quant fund, the managers build computer-based...
Lattice-Based Model
What is 'Lattice-Based Model' An option pricing model that involves the construction of a binomial tree to show the different paths that...
Economic Equilibrium
DefinitionIn economics, economic equilibrium is a state where economic forces such as supply and demand are balanced and in the absence of external influences...
Economic Blight
What is 'Economic Blight' The visible and physical decline of a property, neighborhood or city due to a combination of economic downturns,...
Econometrics
What is econometrics and what does it involve
Econometrics is the study of relationships between economic variables using statistical methods. It is concerned with the...
Imperfect Market
DefinitionIn economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition. In theoretical models where conditions...
Economic Capital
Define Economic Capital
Economic capital refers to the money that a business or individual has available to invest in new ventures or cover unexpected expenses....
VIX
VIX is a ticker symbol of the Chicago Board Exchange Volatility Index (CBOE). The index represents the expectation of the market volatility in next...
Radner Equilibrium
What is 'Radner Equilibrium' A theory suggesting that if economic decision makers have unlimited computational capacity for choice among strategies, then even...
Naked Call
What is a naked call
A naked call is an options strategy in which the investor writes (sells) a call option on a security without...