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commitment, importance of, 178, 181
commodity risk, 122, 124, 131, 149–150, 162
common sense, decision-making and, 32, 46, 194
competition, impact of, 226–227
complacency, 93–95, 126
conspiracy theories, 89–90
Consumer Price Index, 231
contingent claims, 140
continuous improvement, 180
control, in risk management, 130, 177–178
corporate risk management models, 226, 229
correlation
cause and effect distinguished from, 57
coincidental, 58
euro example, 166–167
illustrations of, 56–57
lack of, 71
negative, 58
quantification of, 58–59
stock selection and, 117–118
volatility and, 59–61
coupon bonds, 160
coupon notes, 155–156
credit risk, 122, 130–131, 148, 150, 162
currency rates, 130–131
currency risk, 122, 124, 130–131, 148, 150
custodians, 136–137
decision-making
human nature and, 86
idealized, 13–21
decision theory, generally, 20
decision tree(s)
alternative decisions, 31, 45
applications of, generally, 85
defined, 13
examples, 19, 26–27
life decisions, 187, 190, 192, 195–197, 205, 211–212, 218–219
volatility and, 46
derivatives, 137, 230–231