Controlled random fields, von Neumann – Gale dynamics and multimarket hedging with risk
We develop a model of asset pricing and hedging for interconnected financial markets with frictions – transaction costs and portfolio constraints. The model is based on a control theory for random fields on a directed graph. Market dynamics are described by using von Neumann – Gale dynamical systems first considered in connection with the modelling of economic growth [13,24]. The main results are hedging criteria stated in terms of risk-acceptable portfolios and consistent price systems, extending the classical superreplication criteria formulated in terms of equivalent martingale measures.
World fi nancial crisis and increased volatility of major economic indicators raised attention to the problem of fi nancial risk management in corporations, and to the possibilities of fi nancial derivatives usage for hedging. In perfect markets hedging by means of derivatives allows corporations to mitigate fi nancial risks allowing for minimum costs. Current paper examines factors that restrict usage of derivatives for hedging currency risks by corporations on Russian fi nancial market. It is concluded that on Russian market it is reasonable to use internal facilities as basic method of currency risk management: asset/liability management, regulation of debt
currency structure, diversifi cation, etc. Derivatives should be used in addition to these facilities in very limited volumes for hedging the most predictable sources of risk.
Overvaluation on financial markets, high price volatility and quite rapid reduction of emerging markets towards an investment behavior field in terms of predictive estimation and forecast of further market changes. Hereby decision-making basis is a personal investment understanding and, due to favorable business climate, could build up the growth of irrational exuberance and speculative bubbles on financial markets.
This study models Market Certainty Index as a measure of asset overpricing and market overvaluation in terms of a speculative bubble concept. The results also provide insights of how to enhance the facility of overpriced assets studies at non-transparent economies or emerging markets.
The article studies the correlation between emotional and cognitive competences of students during the course of academic writing in English and their influence on writing skills development, particularly, the ability and desire of learners to mitigate their academic stance expression. In the process of academic text production there can arise negative emotions, which block learners’ thinking abilities. Understanding these can help students cope with them and also boost the thinking process. The development of emotional competence is also seen in the context of academic writing learning because due to cultural peculiarities Russian students tend to be categorical in their utterances and excessively emotional. The results of the experiment, with 30 participants studying at a university, show that emotional and cognitive competences can be crucial constructs in learning skills in the context of explicit academic writing teaching. Introducing the theory of emotional intelligence to the students as a means of pedagogical exposure has shown a positive effect on the learning process; due to comparatively well-developed cognitive abilities the student succeeded in applying the interpersonal component of emotional intelligence in writing for understanding the reader’s perception.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.