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Financial economics is an interesting field of study in economics. It takes in to considerations the analysis of how the resources which are found in the specific market are used and also distributed. The whole process involves making some clear and sound decisions under uncertainty. In any business organization, it is very crucial to make financial decisions, taking it a lot of consideration, the future events which are bound to occur. During the evaluation of how time as a factor of production, uncertainty, information and the opportunity costs are are to make either incentives or disincentives as far as decisions are concerned, financial economics uses the economic theory. More advance models are used by the financial economists, in order to evaluate whether specific variables have an effect on the specific decisions made by either individuals, or business institutions. Concentrating on the financial undertakings is the major role and aim of any financial economist. Financial economic students cannot avoid mathematical formulas in this field. This is because mathematical models and concepts are employed in the financial economics, which ensures that, there is a numerical consistency, rather than just mere theories. Students face a challenge when it comes to the application of these mathematical formulas since it is no lie that, mathematics is not liked by many people.

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