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Decision theory, also known as the theory of choice, is a branch of applied probability theory and analytic philosophy that focuses on making decisions based on assigning probabilities to various factors and assigning numerical consequences to outcomes. Decision theory encompasses three main branches: normative decision theory (focused on optimal decisions) prescriptive decision theory (describing observed […]

Business magnates like Bill Gates, Mark Zuckerberg, Jeff Bezos, and other ultra-wealthy individuals have financial situations that are vastly different from the average person. While the specifics of their personal financial strategies are private and not fully disclosed to the public, there are some general observations we can make: Purpose of a 401(k) A 401(k) […]

The pension plan and 401(k) are two retirement savings options that serve as pillars of financial preparedness for life after work, each offering distinct benefits and considerations. While both aim to provide financial stability during retirement, understanding the key differences between them is essential for making informed decisions that align with your unique financial goals. […]

A career in finance typically requires having an academic background, starting from undergraduate study and sometimes progressing to postgraduate education. These degrees not only lay the theoretical groundwork for understanding financial systems, but also equip students with practical skills necessary for the industry.   Key Takeaways – Educational Paths for Finance Careers Finance careers often […]

Financial institutions play an important role in the global economy and financial system by facilitating transactions, providing financial products and services, and promoting economic growth and stability. These entities come in various types and serve different purposes, from commercial banks and credit unions to insurance companies and investment firms. Moreover, numerous professionals work within these […]

Financial modeling refers to the process of creating a summary of a company’s (or any financial entity’s) financial performance. It involves using spreadsheet tools and methodologies to predict the future financial performance of a company or investment. Financial modeling has several applications in both corporate finance and quantitative finance.   Key Takeaways – Financial Modeling […]

A trading career has lured many with the promise of wealth and independence. While the potential rewards are great, the path to becoming a professional trader is filled with challenges and requires a strategic approach. If you’re considering a career in trading, you might consider that there are two main paths available. Each path has […]

Finance is a popular ground for the application of sophisticated mathematical techniques. From trading and investment strategies and risk assessment to predicting market movements, math provides the basis for a wide range of financial tools and methods. Here we discuss the various mathematical techniques used in financial markets.   Key Takeaways – Mathematical Techniques in […]

The financial markets are filled with various kinds of trades and investment options and each of these comes with different levels of risk and reward. To make informed trading or investment decisions, it’s vital to have a means of assessing the performance of various financial assets. Here we’ll look at a number of performance measurements […]

Post-Modern Portfolio Theory (PMPT) emerged as a response to the limitations and criticisms of Modern Portfolio Theory (MPT), which has been the cornerstone of portfolio management since its introduction by Harry Markowitz in the 1950s. MPT focuses on optimizing risk and return through diversification and asset allocation based on historical data. However, PMPT brings new […]