) proposed in 2012 by the so-called group of ‘euro-nomics’ is a way to promote financial safety and risk-sharing in the EMU. In …

expectations aggregated during certain time interval Δ. We call it - the second-order economic theory. The n-th degree products of …-degree trades and expectations in economic space. As economic space we regard numerical continuous risk grades. Numerical risk … grades are discussed at least for 80 years. We propose that econometrics permit accomplish risk assessment for almost all …

increase alpha with the risk of early exercise of short options, which may precipitate the liquidation of the fund. Optimal … as a risk limit, we show how a hedge fund can optimally choose aggregate risk capital and then allocate its risk capital … across different risk-taking units to maximize alpha in the presence of these short option positions. Implications of our …