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Financial Markets

Yale,, Spring 2008 , Prof. Robert Shiller

Updated On 02 Feb, 19

Overview

Finance and Insurance as Powerful Forces in Our Economy and Society - The Universal Principle of Risk Management: Pooling and the Hedging of Risks - Technology and Invention in Finance - Portfolio Diversification and Supporting Financial Institutions (CAPM Model) - Insurance: The Archetypal Risk Management Institution - Efficient Markets vs. Excess Volatility - Behavioral Finance: The Role of Psychology - Human Foibles, Fraud, Manipulation, and Regulation - Guest Lecture by David Swensen - Debt Markets: Term Structure - Stocks - Real Estate Finance and its Vulnerability to Crisis - Banking: Successes and Failures - Guest Lecture by Andrew Redleaf - Guest Lecture by Carl Icahn - The Evolution and Perfection of Monetary Policy - Investment Banking and Secondary Markets - Professional Money Managers and Their Influence - Brokerage, ECNs,Guest Lecture by Stephen Schwarzman - Forwards and Futures - Stock Index, Oil and Other Futures Markets - Options Markets - Making It Work for Real People: The Democratization of Finance - Learning from and Responding to Financial Crisis I (Lawrence Summers)

Includes

Lecture 5: Insurance The Archetypal Risk Management Institution

4.1 ( 11 )


Lecture Details

Financial Markets (ECON 252)

Insurance provides significant risk management to a broad public, and is an essential tool for promoting human welfare. By pooling large numbers of independent or low-correlated risks, insurance providers can minimize overall risk. The risk management is tailored to individual circumstances and reflects centuries of insurance industry experience with real risks and with moral hazard and selection bias issues. Probability theory and statistical tools help to explain how insurance companies use risk pooling to minimize overall risk. Innovation and government regulation have played important roles in the formation and oversight of insurance institutions.

Complete course materials are available at the Open Yale Courses website httpopen.yale.educourses

This course was recorded in Spring 2008.

Ratings

3.5


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Comments
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Sam

Excellent course helped me understand topic that i couldn't while attendinfg my college.

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Dembe

Great course. Thank you very much.

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