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Finance theories

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annuity
In investment, an annuity is a series of payments of the same kind made at equal time intervals, usually over a finite term. Annuities are commonly issued by life insurance companies, where an individual pays a lump sum or a series of premiums in return for regular income payments, often to provide retirement or survivor benefits.
rate of return
finance term; profit on an investment
Black–Scholes model
mathematical model of a financial market with options
prospect theory
theory of behavioral economics and behavioral finance that was developed by Daniel Kahneman and Amos Tversky in 1979
value investing
investment paradigm that involves buying securities that appear underpriced by some form of fundamental analysis
decoy effect
phenomenon in marketing
random walk hypothesis
financial theory
Alpha
risk-adjusted measure of the so-called active return on an investment
put–call parity
in financial mathematics, defines a relationship between the price of a European call option and a European put option
Equity premium puzzle
economics concept
asset pricing
theory of how equities and debt instruments are valued
numéraire
The numéraire (or numeraire) is a basic standard by which value is computed. In mathematical economics it is a tradable economic entity in terms of whose price the relative prices of all other tradables are expressed. In a monetary economy, one of the functions of money is to act as the numéraire, i.e. to serve as a unit of account and therefore provide a common benchmark relative to which the value of various goods and services can be measured against.
Pecking order theory
financial model