Central banks have a long tradition of minimizing their exposure to credit-risk. The Federal Reserve’s response to the … recent financial crisis, which entailed greater risk-taking, has raised the question of whether such ‘unusual’ practices are …-targeting central bank, aggregate risk, bankruptcy, and it is tractable. The main contribution is showing that, in an economy with …

In this paper, another factor that affects equity risk premium is derived from a simple classical monetary model, which … essentially trading labor with future goods, it is inevitable that risk-free bonds have lower interest rate than ideal risk …

which the risk management and hedging needs of investors may be effectively met through the derivative instruments. However …-changing world characterised by both unprecedented opportunities and unprecedented risks. Thus, the thrust of this paper is to …

business models has led to an expansion of the risk taxonomy affecting corporate management. In addition to traditional … financial risks, new risks have emerged, primarily climate risk, environmental, and energy risks, which can significantly impact …

-Scholes-Merton option pricing formula require that risk-free interest rate be a linear function of underlying asset’s expected rate of … return (alpha) and variance of return, or (as in the literature) risk-free interest rate equal underlying asset's alpha. …

eliminating an important component of the market risk. Recall that the assumption that a future payment can be invested with the …