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Portfolio Risk Control by Using Derivative Instruments

Author

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  • MĂDĂLINA ANTOANETA RĂDOI

    („Nicolae Titulescu” University 185 Calea Văcăreşti, 4th District, Bucharest ROMANIA)

  • ALEXANDRU OLTEANU

    („Nicolae Titulescu” University 185 Calea Văcăreşti, 4th District, Bucharest ROMANIA)

Abstract

The priority in portfolio management is a good risk assessment and management. Of great importance is the margin that an asset portfolio guarantor must use with specific expertise in certain areas of market temporal inefficiency in order to improve its management performance. The relevant validity of the financial market and the emphasis laid on risk management carried along the development of financial instruments tailored to risk management. New derivative financial instruments have revolutionized the methods of portfolio management, of corporate treasury management, of banking management and, more generally, all financial strategies.

Suggested Citation

  • Mădălina Antoaneta Rădoi & Alexandru Olteanu, 2017. "Portfolio Risk Control by Using Derivative Instruments," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 5(2), pages 90-96, December.
    • Handle: RePEc:ntu:ntugeo:vol5-iss2-17-090
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    References listed on IDEAS

    as
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    2. Geske, Robert & Shastri, Kuldeep, 1985. "Valuation by Approximation: A Comparison of Alternative Option Valuation Techniques," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 20(1), pages 45-71, March.
    3. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
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