The analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of
anther person, a principal.
An accounting reserve set aside to equate expected (mean) losses from credit defaults. It is common to consider this reserve as the buffer for...
A theory that the timing of loan payments should be tied to the timing of a borrower’s expected income.
A multivariate model for estimating the cost of equity capital, which incorporates several systematic risk factors and the effects of Arbitrageurs.