管理学专业英语教程（第四版·下）邱东林-Unit 9 Financial Engineering.pptVIP

LOGO LOGO Financial Engineering: Information Technology and its Place in the New Finance 管理学专业英语教程（第四版·下） Fudan University engineering analysis description Fudan University Three Stages in any True Science’s Evolution Three stages Finance: The third stages Finance has passed through all of these stages arriving, finally, during the 1980s, at the engineering stage This transformation has created many challenges Fudan University Outlines 1 2 3 a definition of financial engineering a review of the evolution of financial engineering a description of the role that information technology has played in that evolution 4 a discussion of a few of the challenges that the technology poses for managers, regulators, and policy makers Fudan University Financial Engineering Defined Fudan University Processes: the sequence of steps and the act itself of formulating and implementing a solution by combining the relevant theory and instruments Instruments: include traditional financial instruments and various short-term debt instruments Theory: the body of knowledge and the collection of ideas that have evolved to describe a discipline Fudan University What Constitutes Financial Technology Three fundamental components Information Technology is Critical Financial engineering brings together these disparate pieces of technology to formulate and implement creative solutions to seemingly intractable problems Fudan University hardware and software, data transmission The Evolution of Financial Engineering Fudan University The Evolution of Financial Engineering Before long, practitioners began to employ the new theory and the tools that grew from it in their portfolio selection and hedging strategies Fudan University In 1952 Harry Markowitz provided the theoretical foundations of modern portfolio theory In the 1960s William Sharpe and others developed the Capital Asset Pricing Model. The rudiments of hedging theory followed The Evolution of Financial Engineering Fudan Universi