What is GATT and what is its goal?
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GATT is the General Agreement on Tariffs and Trade. It is a treaty that seeks to reduce trade barriers among participant nations.
What is Hedge?
We focus more on cash flows rather than profits when estimating proposed capital budgeting projects. Explain.
What is a Poisson Process?
Explain an example of superhedging.
Give explanation: Trade credit is free credit.
How is marking to market straightforward?
Illustrates an example of probabilities in a simple coin-tossing experiment.
What is mathematical definition of risk in form of semi-variance?
Why is structural approach to modelling risk of default born?
Explain the concept of the risk–return relationship.
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