Economy – Quantitative Finance – Risk Management
Scientific paper
2010-09-15
Economy
Quantitative Finance
Risk Management
3 pages
Scientific paper
The article presents a translation of some widespread financial terminology into the language of decision theory. For instance, financial leverage can be regarded as an object of choice or a decision. We show how the optics of decision theory allows perceiving the recently introduced metrics of see-through-leverage, which proved to be very useful in understanding the phenomenology of the recent economic crisis.
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