Course Information

FRE6041 Risk Management in the Real World

Credits: 1.50

The course covers failures of financial theory in risk management, deriving from fundamental definitions and assumptions in modeling, including pricing formulae; convexity; stochasticity and volatility; "fat tails"; and risk. Other topics: Portfolio robustness and extreme markets and moral hazard; data-mining biases and decision error; and decision-making with incomplete information.

Pre-Requisite: Graduate Standing