What is Financial Mathematics?
Financial Mathematics can vary from elementary equations, like calculating simple interest on a principal value to as complicated as utilising partial differential equations when it comes to risk...
View ArticleIntroduction to Bonds and Share Valuation
As we covered in ‘What are Financial Markets?’, there are markets that trade bonds (or debt) and shares (or equity). These are specifically referred to as Bond Markets or Share Markets respectively. In...
View ArticleProject Evaluation: What is Break-Even Analysis?
When accounting for risks, managers will determine if a project is too risky relative to the profitability of it. There are several techniques used when it comes to risk analysis – but in this post, we...
View ArticleRisk and Return Asset Pricing: The Mathematics
In our three-part series to the introduction of corporate project evaluation - we explored the variety of tools that project managers have at their disposable in order to determine the most profitable...
View ArticleRisk and Return Asset Pricing: An Introduction to CAPM
This is a straight continuation from Risk and Return Asset Pricing: The Mathematics. In the above linked topic, we calculated that the correlation coefficient can be anywhere between -1 and +1....
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