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The choices of price, differentiation, and quality in decision-making concerning returns by financial services companies are discussed in detail. Profitable niches are developed for financial services products.

The desirability of central bank intervention on foreign exchange was evaluated through the consideration of risk adjustment estimates. Estimates of risk-adjusted profits involving US Fed and the Swedish Riksbank revealed that central bank intervention on foreign-exchange leads to profits. The approach used in the analysis uncovered the significance of risk adjustment, which makes research outcomes insensitive to the presence of interest-rate differentials, in assessing central bank's gain on foreign-exchange intervention.

Empirical research typically relies on book rather than market value of debt, though theory is virtually always in terms of market values. This paper documents how book value measurements of [...]

A model used to determine the impact of absolute priority rule (APR) violations on security price noise is introduced. A group of researchers call for the prohibition of APR violations because of their tendency to increase uncertainty to the process of security valuation. However, another group favors APR violations to minimize inefficient liquidations. Results show that APR violations significantly increase noise and failure to consider their impact can result in a suboptimal design.

The market value of the ex ante risk premium is of major interest to economists involved with finance, for investment planning and for decision-making applications. One technique that is used to project the ex ante premium is to calculate the average of the recent realizations or take the market's sample risk premium. The population estimate can be made with the proper adjustments.