Risk and Markets
Overview
A risky financial market is a collection of traded assets,
that have uncertain payoffs in the future.
Because the payoffs are uncertain, each assets payoff at time {% t %} is modelled as a
random variable {% X_i(\omega, t) %}, where {% X_i %} is the {% i^{th} %} asset,
{% \omega %} represents a state of the world (represented as point in the underlying probability space)
and {% t %} is some time.