MAIN LESSONS FOR FINANCE OF THE 2007-2009 CRISIS

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Tom Berglund

https://doi.org/10.22495/cocv7i4sip8

Abstract

This paper discusses issues that should receive an increased weight in how finance is being taught in the future, based on the experiences of the financial crisis of 2007-2009. The three specific lessons are: the role of basic economic analysis in understanding the foundations of asset values, the shortcomings of diversification as a method to reduce risks, and the increased role of information asymmetry in crisis stricken financial markets.

Keywords: Financial Crisis, Asset Value, Diversification, Risks

How to cite this paper: Berglund, T. (2010). Main lessons for finance of the 2007-2009 crisis [Special issue]. Corporate Ownership & Control, 7(4-5), 62-65. https://doi.org/10.22495/cocv7i4sip8