Microeconomics Vs. Macroeconomics
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Economics is divided into two broad categories: micro and macro. Find out what the difference is between them and where they overlap.
The discount rate is the interest rate you need to earn on a given amount of money today to end up with a given amount of money in the future. Let's say you need $1,000 one year from now to go on vacation. We can use the discount rate to determine how much money you would need to have today to have $1,000 in one year.
Most investment choices involve a tradeoff between risk and reward. The "Efficient Frontier" is a modern portfolio theory tool that shows investors the best possible return they can expect from their portfolio, given the level of volatility they're willing to accept.
Nash Equilibrium is a key concept of game theory, which helps explain how people and groups approach complex decisions. Named after renowned mathematician John Nash, the idea of Nash Equilibrium has been used in such diverse fields as international relations, psychology and economics. Game theory in general looks at how individuals or groups make choices that will in turn affect the choices of other parties.
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
Learn more about this classic game theory scenario.
Learn about the differences between these two words and how each one is used in the stock market.
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