[ad_1]
Financial engineering is a discipline that uses knowledge from many fields, including computer science, economics, applied mathematics and statistics, so the new solutions to financial problems as well as new product finance. Also known as computational engineering, financial engineering is used in a variety of organizations, including investment banks and insurance agencies. One example of the application of financial engineering to the current problem is financial reinsurance products, which allow the insurance company to write major policy without shouldering too much risk by sharing it with another company in exchange for part of the premiums. . Another example is the bundling several products together in a single package that is available to consumers at a special low price
Some of the fields of financial engineering is applied are:
finance companies. This is a blanket term that refers to the way the financial corporation is controlled. Financial engineering can be used to solve problems such as how to allocate limited resources of the company include series of investment opportunities in order to maximize returns. Or he can look at the financial records of the company and determine how to reduce costs in order to make the company more profitable.
Portfolio management. As a portfolio manager, it is your duty to manage the portfolio to ensure the best returns for investors. Financial engineering is one of the tools that you can use to help achieve this goal. For example, you can choose to keep certain investment funds in the hope that they would deliver stable returns over time. Or, if an investor has a higher risk tolerance, you can adopt an active management style that you will be looking for opportunities to make a quick profit by aggressively trading securities.
risk. This field includes entry and minimize risk in order to increase the likelihood that the desired result will be achieved or an unfortunate event will be avoided. For example, financial engineer can decide if it’s worth having a specific investment opportunity and to look at strategies to minimize risk. For example, you can limit the amount of money that will be put in investment. Or he can make a risk by diversifying the portfolio and allocating resources to other investments in an attempt to minimize possible losses if the investment does not pay. You can read download free pdf books on risk management plans if you want to learn about them and how to apply them to your portfolio.
[ad_2]