What is Financial Econometrics?
Financial econometrics is the discipline that studies the quantitative and statistical aspects of economic principles. As different facets of the smaller economy are interrelated, a certain analysis of these relationships are necessary to understand the different individual components and their effects on the full economy at large. This data is observable from the normal practices of the various market forces, making experimentation unnecessary in financial econometrics. In addition, a number of different models are used in order to find the economic data that benefits the finance industry and investment research in general. The most beneficial aspect of this discipline can be seen in the fields of portfolio management and risk management. Econometricians, the people that study financial econometrics, primarily use a principle known as regression analysis to model and analyze the components of the economy. Statistical analysis and the targeting of different variables gives researchers
