Categories: Investing Essentials

Financial Economics

Financial Economics considers and analyses various aspects of financial markets like the state of the economy (recession, stagflation, depression, etc.), inflation levels, stock markets, forex reserves, and more. It acts as an important study that enables sound investment decisions, valuation of securities and evaluating the risk of investments.

The key aspects of financial economics are risk management and diversification as well as understanding the present value of savings and investments affected due to inflation and risk of investments. Determining the expected rate of return on an investment using the Capitalist Asset Pricing Model (CAPM) is also part of financial economics. The study of financial economics helps in understanding the impact of prevailing laws and regulations on their individual portfolios thereby enables the investors on making informed decisions and effective risk management.

abhilash.st

Share
Published by
abhilash.st

Recent Posts

PPF calculator

A PPF calculator is an online tool that helps you calculate the maturity amount at…

11 months ago

Non-Resident Indian (NRI) PPF Account

Non-resident Indians are not allowed to open a new PPF account. However, if a resident…

11 months ago

Minor Account

A PPF account can be opened by a parent or guardian on behalf of a…

11 months ago

Joint Account

PPF rules do not allow joint accounts. An account can only be opened in the…

11 months ago

Extension of PPF Account:

After the maturity of the PPF account, you have the option to extend it for…

11 months ago

Withdrawal

From the 7th financial year onwards, you can make partial withdrawals from your PPF account.…

11 months ago