2,746 research outputs found
The Role of AI in Transforming Financial Practices
No full textSince OpenAI's introduction of ChatGPT in November 2022, talk of artificial intelligence (AI) has captured Wall Street's enthusiasm. Yet, even as AI surges to the forefront in corporate earnings calls, some investors remain skeptical, viewing its promises as mere hype. In this Public Discussion Note on "The Role of AI in Transforming Financial Practices," Prof. Markus Leippold, SFI Senior Chair and Professor of Financial Engineering at the University of Zurich, strikes a balance between exuberance and caution. By contrasting the optimistic projections of the big-tech companies, who view AI as pivotal to market competition, with the skeptical outlook of some investors, Prof. Leippold attempts to unravel the complexities of today's AI phenomenon. He begins by discussing the technology itself and the potential for AI to reshape the economic landscape, and ends by touching on ethical considerations, societal implications, and the challenges that must be met before its widespread application in finance
Half as many cheers - the multiplier reviewed
No full textThe financial industry puts the Basle Committee under strain to align regulatory capital with economic capital. This could be reached by allowing more flexibility in the choice of risk measure for regulatory reporting. Markus Leippold and Paolo Vanini show that if banks could use the theoretically more sound risk measure of Expected Shortfall, the three cheers of Stahl (1997) would be reduced to exactly half as many cheers. This would substantially decrease the regulatory capital in most cases. There is no dispute on the necessity of regulating the financial industry. Ideally, a regulation aims at maintaining and improving the safety of the financial industry. At the root of every regulation framework lies the basic idea of calculating a capital reserve as a function of the firm’s total capital and its risk. While the calculation of the firm’s capital is tedious but feasible, the measurement of risk is a difficult task. Consequently, regulators advocate normative and simplified rules applicable to all financial institutions
Asset Pricing Under The Quadratic Class
No full textWe identify and characterize a class of term structure models where bond yields are quadratic functions of the state vector. We label this class the quadratic class and aim to lay a solid theoretical foundation for its future empirical application. We consider asset pricing in general and derivative pricing in particular under the quadratic class. We provide two general transform methods in pricing a wide variety of fixed income derivatives in closed or semiclosed form. We further illustrate how the quadratic model and the transform methods can be applied to more general settings.quadratic class; interest rates; term structure models; state price density; Markov process.
Evidence based leadership
No full textAuthor Markus PodduikinMasterarbeit Johannes Kepler Universität Linz 2024Arbeit gesperr
Improving the search for monitoring tools using recommender technology
No full textAuthor Markus Eisl BSc.Masterarbeit Universität Linz 2023Arbeit gesperr
Improving the search for monitoring tools using recommender technology
No full textAuthor Markus Eisl BSc.Masterarbeit Universität Linz 2023Arbeit gesperr
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