Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Describe some of the motives and mistakes made by the financial engineers?

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Motives of financial engineers are discussed as follows:

  • Financial engineers use quantitative models to find the mispricing in the market and making Profit out of that model made.
  • Engineers mix the use of finance as well as computer science and make a model that helps to mitigate the financial risk of the company.
  • Engineers develop algorithms that are useful in derivatives trading and it can lead to huge profits because of the fast execution due to the algorithms made.
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