The Universal Principle of Risk Management: Pooling and the Hedging of Risks -Year 2008 Financial Markets (ECON 252) Statistics and mathematics underlie the theories of finance. Probability Theory and various distribution types are important to understanding finance. Risk management, for instance, depends on tools such as variance, standard deviation, correlation, and regression analysis. Financial analysis methods such as present values and valuing streams of payments are fundamental to understanding the time value of money and have been in practice for centuries. 00:00 - Chapter 1. The Etymology of Probability 10:01 - Chapter 2. The Beginning of Probability Theory 15:38 - Chapter 3. Measures of Central Tendency: Independence and Geometric Average 33:12 - Chapter 4. Measures of Dispersion and Statistical Applications 50:39 - Chapter 5. Present Value 01:03:46 - Chapter 6. The Expected Utility Theory and Conclusion Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Spring 2008.

Video is embedded from external source so embedding is not available.

Video is embedded from external source so download is not available.

Channels: Finance

Tags: binomial distribution central tendency correlation covariance expected value fat-tailed multiplication theory perpetuities perpetuity present values probability regression risk management standard deviation variance

Uploaded by: yalefinanmarkets ( Send Message ) on 20-08-2012.

Duration: 69m 8s

No content is added to this lecture.

This video is a part of a lecture series from of Yale