Uncover the fascinating world of Behavioral Finance in our latest article. From reshaping finance with Prospect Theory to the psychology of overbidding, this Nobel Prize-winning field has been changing the game since its widespread use and it will continue to do so.
Embark on a journey through the fascinating evolution of game theory as we delve into its more current history, its shifts from cooperative to non-cooperative approaches, and its enduring allure as a problem-solving tool in the real world.
Discover how game theory has evolved and influenced financial decision-making. From influential financial models like CAPM, EMH, and Black-Scholes, learn how game theory came into the world of finance and how it has progressed thus far.
Explore the nuts and bolts of how banks validate market risk models. Our latest article breaks it down into three key steps: data validation, pricing model assessment, and organizational governance. Dive into the world of financial integrity.
In finance, model accuracy is crucial. We’ve explored quantitative and qualitative tests, but what happens when historical data falls short? That’s where alternative validation methods come into play, ensuring models remain fit for purpose. Read on to see the usual backtesting techniques used in financial forecasting.
Traditional trade stats fall short in today’s global economy. Let’s dive into Revealed Comparative Advantage (RCA) and why it’s vital for a nuanced view of trade dynamics!