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...Financial economics is a branch of that analyzes the use and distribution resources in markets which decisions are made under uncertainty must often take into account future events whether those be related to individual stocks portfolios or market as whole involves creation sophisticated models test variables affecting particular decision important has many aspects two most an part finance working out total risk portfolio risky assets since may less than components builds heavily on microeconomics basic accounting concepts parts system money used medium buy goods services instruments formal obligations entitle one party receive payments share from another institutions central banks modern include public sector private systems allow funds allocated invested moved between economic sectors they enable individuals companies associated risks function ensures efficient functioning payment mechanism economy all transactions buyers sellers effected smoothly because helps transformation by dive...