Finance refers to monetary resources and to the study and discipline of money , currency , assets and liabilities . As a subject of study, it is related to but distinct from economics , which is the study of the production , distribution , and consumption of goods and services . Based on the scope of financial activities in financial systems , the discipline can be divided into personal , corporate , and public finance .
154-455: Friedrich Wilhelm Heinrich Alexander von Humboldt (14 September 1769 – 6 May 1859) was a German polymath , geographer , naturalist , explorer , and proponent of Romantic philosophy and science . He was the younger brother of the Prussian minister, philosopher, and linguist Wilhelm von Humboldt (1767–1835). Humboldt's quantitative work on botanical geography laid the foundation for
308-400: A specialist —is used to describe a person with a general approach to knowledge. The term universal genius or versatile genius is also used, with Leonardo da Vinci as the prime example again. The term is used especially for people who made lasting contributions in at least one of the fields in which they were actively involved and when they took a universality of approach. When a person
462-815: A basic shape and then they were further adapted to their environment by an external force. Humboldt urged him to publish his theories. Together, the two discussed and expanded these ideas. Goethe and Humboldt soon became close friends. Humboldt often returned to Jena in the years that followed. Goethe remarked about Humboldt to friends that he had never met anyone so versatile. Humboldt's drive served as an inspiration for Goethe. In 1797, Humboldt returned to Jena for three months. During this time, Goethe moved from his residence in Weimar to reside in Jena. Together, Humboldt and Goethe attended university lectures on anatomy and conducted their own experiments. One experiment involved hooking up
616-428: A broad range of subfields exists within finance. Asset- , money- , risk- and investment management aim to maximize value and minimize volatility . Financial analysis assesses the viability, stability, and profitability of an action or entity. Some fields are multidisciplinary, such as mathematical finance , financial law , financial economics , financial engineering and financial technology . These fields are
770-479: A comprehensive historical overview of the ascension and decline of the polymath as, what he calls, an "intellectual species". He observes that in ancient and medieval times, scholars did not have to specialize. However, from the 17th century on, the rapid rise of new knowledge in the Western world—both from the systematic investigation of the natural world and from the flow of information coming from other parts of
924-473: A distance, "because the images travelled, the botanists did not have to". Humboldt was astounded at Mutis's accomplishment; when Humboldt published his first volume on botany, he dedicated it to Mutis "as a simple mark of our admiration and acknowledgement". Humboldt had hopes of connecting with the French sailing expedition of Baudin, now finally underway, so Bonpland and Humboldt hurried to Ecuador. They crossed
1078-418: A frog leg to various metals. They found no effect until the moisture of Humboldt's breath triggered a reaction that caused the frog leg to leap off the table. Humboldt described this as one of his favorite experiments because it was as if he were "breathing life into" the leg. During this visit, a thunderstorm killed a farmer and his wife. Humboldt obtained their corpses and analyzed them in the anatomy tower of
1232-621: A guide. Venezuela from the 16th to the 18th centuries was a relative backwater compared to the seats of the Spanish viceroyalties based in New Spain (Mexico) and Peru, but during the Bourbon reforms, the northern portion of Spanish South America was reorganized administratively, with the 1777 establishment of a captaincy-general based at Caracas. A great deal of information on the new jurisdiction had already been compiled by François de Pons, but
1386-431: A high degree of computational complexity and are slow to converge to a solution on classical computers. In particular, when it comes to option pricing, there is additional complexity resulting from the need to respond to quickly changing markets. For example, in order to take advantage of inaccurately priced stock options, the computation must complete before the next change in the almost continuously changing stock market. As
1540-437: A holistic perception of the universe as one interacting entity, which introduced concepts of ecology leading to ideas of environmentalism . In 1800, and again in 1831, he described scientifically, on the basis of observations generated during his travels, local impacts of development causing human-induced climate change . Humboldt is seen as "the father of ecology" and "the father of environmentalism". Alexander von Humboldt
1694-492: A loan or other debt obligations. The main areas of personal finance are considered to be income, spending, saving, investing, and protection. The following steps, as outlined by the Financial Planning Standards Board, suggest that an individual will understand a potentially secure personal finance plan after: Corporate finance deals with the actions that managers take to increase the value of
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#17327653368771848-738: A long-term strategic perspective regarding investment decisions that affect public entities. These long-term strategic periods typically encompass five or more years. Public finance is primarily concerned with: Central banks, such as the Federal Reserve System banks in the United States and the Bank of England in the United Kingdom , are strong players in public finance. They act as lenders of last resort as well as strong influences on monetary and credit conditions in
2002-414: A mix of an art and science , and there are ongoing related efforts to organize a list of unsolved problems in finance . Managerial finance is the branch of finance that deals with the financial aspects of the management of a company, and the financial dimension of managerial decision-making more broadly. It provides the theoretical underpin for the practice described above , concerning itself with
2156-580: A mix of occupations or of intellectual interests, Ahmed urges a breaking of the "thinker"/"doer" dichotomy and the art/science dichotomy. He argues that an orientation towards action and towards thinking support each other, and that human beings flourish by pursuing a diversity of experiences as well as a diversity of knowledge. He observes that successful people in many fields have cited hobbies and other "peripheral" activities as supplying skills or insights that helped them succeed. Ahmed examines evidence suggesting that developing multiple talents and perspectives
2310-552: A ne'er do well, not often mentioned in the family history. Alexander Georg died in 1779, leaving the brothers Humboldt in the care of their emotionally distant mother. She had high ambitions for Alexander and his older brother Wilhelm, hiring excellent tutors, who were Enlightenment thinkers, including Kantian physician Marcus Herz and botanist Carl Ludwig Willdenow , who became one of the most important botanists in Germany. Humboldt's mother expected them to become civil servants of
2464-436: A new model of education that better promotes creativity and innovation: "we must focus education on principles, methods, and skills that will serve them [students] in learning and creating across many disciplines, multiple careers, and succeeding life stages". Peter Burke , Professor Emeritus of Cultural History and Fellow of Emmanuel College at Cambridge, discussed the theme of polymathy in some of his works. He has presented
2618-420: A rapid fall in the water level of the valley's Lake Valencia, Humboldt credited the desiccation to the clearance of tree cover and to the inability of the exposed soils to retain water. With their clear cutting of trees, the agriculturalists were removing the woodland's "threefold" moderating influence upon temperature: cooling shade, evaporation and radiation. Humboldt visited the mission at Caripe and explored
2772-447: A result, the finance community is always looking for ways to overcome the resulting performance issues that arise when pricing options. This has led to research that applies alternative computing techniques to finance. Most commonly used quantum financial models are quantum continuous model, quantum binomial model, multi-step quantum binomial model etc. The origin of finance can be traced to the beginning of state formation and trade during
2926-411: A ship on a major expedition. Meantime, he went to Paris, where his brother Wilhelm was now living. Paris was a great center of scientific learning and his brother and sister-in-law Caroline were well connected in those circles. Louis-Antoine de Bougainville urged Humboldt to accompany him on a major expedition, likely to last five years, but the French revolutionary Directoire placed Nicolas Baudin at
3080-423: A single issue. Ahmed cites biologist E. O. Wilson 's view that reality is approached not by a single academic discipline but via a consilience between them. One argument for studying multiple approaches is that it leads to open-mindedness . Within any one perspective, a question may seem to have a straightforward, settled answer. Someone aware of different, contrasting answers will be more open-minded and aware of
3234-408: A society, company, community, guild, corporation , etc". At this time, universities did not specialize in specific areas, but rather trained students in a broad array of science, philosophy, and theology. This universal education gave them a grounding from which they could continue into apprenticeship toward becoming a master of a specific field. When someone is called a "Renaissance man" today, it
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#17327653368773388-446: A sophisticated mathematical model is required, and thus overlaps several of the above. As a specialized practice area, quantitative finance comprises primarily three sub-disciplines; the underlying theory and techniques are discussed in the next section: DCF valuation formula widely applied in business and finance, since articulated in 1938 . Here, to get the value of the firm , its forecasted free cash flows are discounted to
3542-580: A specific plan of exploration, so that the change did not upend a fixed itinerary. He later wrote that the diversion to Venezuela made possible his explorations along the Orinoco River to the border of Portuguese Brazil. With the diversion, the Pizarro encountered two large dugout canoes each carrying 18 Guayaqui Indians. The Pizarro ' s captain accepted the offer of one of them to serve as pilot. Humboldt hired this Indian, named Carlos del Pino, as
3696-463: A typology of polymathy, ranging from the ubiquitous mini-c polymathy to the eminent but rare Big-C polymathy, as well as a model with some requirements for a person (polymath or not) to be able to reach the highest levels of creative accomplishment. They account for three general requirements—intelligence, motivation to be creative, and an environment that allows creative expression—that are needed for any attempt at creativity to succeed. Then, depending on
3850-517: A voyage to the Pacific, they left the Ecuadorian port of Guayaquil and headed for Acapulco on Mexico's west coast. Even before Humboldt and Bonpland started on their way to New Spain's capital on Mexico's central plateau, Humboldt realized the captain of the vessel that brought them to Acapulco had reckoned its location incorrectly. Since Acapulco was the main west-coast port and the terminus of
4004-398: A well-diversified portfolio, achieved investment performance will, in general, largely be a function of the asset mix selected, while the individual securities are less impactful. The specific approach or philosophy will also be significant, depending on the extent to which it is complementary with the market cycle . Risk management here is discussed immediately below. A quantitative fund
4158-465: A well-educated woman and widow of Baron Friedrich Ernst von Holwede (1723-1765), with whom she had a son Heinrich Friedrich Ludwig (1762-1817). Alexander Georg and Maria Elisabeth had four children: two daughters, Karoline and Gabriele, who died young, and then two sons, Wilhelm and Alexander. Her first-born son, Wilhelm and Alexander's half-brother, Rittmaster in the Gendarme regiment was something of
4312-482: Is about performing valuation and asset allocation today, based on the risk and uncertainty of future outcomes while appropriately incorporating the time value of money . Determining the present value of these future values, "discounting", must be at the risk-appropriate discount rate , in turn, a major focus of finance-theory. As financial theory has roots in many disciplines, including mathematics, statistics, economics, physics, and psychology, it can be considered
4466-437: Is an individual whose knowledge spans many different subjects, known to draw on complex bodies of knowledge to solve specific problems. Embodying a basic tenet of Renaissance humanism that humans are limitless in their capacity for development, the concept led to the notion that people should embrace all knowledge and develop their capacities as fully as possible. This is expressed in the term Renaissance man , often applied to
4620-418: Is considered the principal responsible for rekindling interest in polymathy in the scientific community. His works emphasize the contrast between the polymath and two other types: the specialist and the dilettante. The specialist demonstrates depth but lacks breadth of knowledge. The dilettante demonstrates superficial breadth but tends to acquire skills merely "for their own sake without regard to understanding
4774-411: Is contrasted with the idea of narrowness, specialization, and the restriction of one's expertise to a limited domain. The possession of comprehensive knowledge at very disparate areas is a hallmark of the greatest polymaths. Depth refers to the vertical accumulation of knowledge and the degree of elaboration or sophistication of one's sets of one's conceptual network. Like Robert Root-Bernstein, Araki uses
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4928-678: Is described as having encyclopedic knowledge , they exhibit a vast scope of knowledge. However, this designation may be anachronistic in the case of persons such as Eratosthenes , whose reputation for having encyclopedic knowledge predates the existence of any encyclopedic object . Finance In these financial systems, assets are bought, sold, or traded as financial instruments , such as currencies , loans , bonds , shares , stocks , options , futures , etc. Assets can also be banked , invested , and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. Due to its wide scope,
5082-475: Is helpful for success in a highly specialised field. He cites a study of Nobel Prize-winning scientists which found them 25 times more likely to sing, dance, or act than average scientists. Another study found that children scored higher in IQ tests after having drum lessons, and he uses such research to argue that diversity of domains can enhance a person's general intelligence. Ahmed cites many historical claims for
5236-436: Is managed using computer-based mathematical techniques (increasingly, machine learning ) instead of human judgment. The actual trading is typically automated via sophisticated algorithms . Risk management , in general, is the study of how to control risks and balance the possibility of gains; it is the process of measuring risk and then developing and implementing strategies to manage that risk. Financial risk management
5390-444: Is mathematics that is actually important in this new scenario Finance theory is heavily based on financial instrument pricing such as stock option pricing. Many of the problems facing the finance community have no known analytical solution. As a result, numerical methods and computer simulations for solving these problems have proliferated. This research area is known as computational finance . Many computational finance problems have
5544-519: Is meant that rather than simply having broad interests or superficial knowledge in several fields, the individual possesses a more profound knowledge and a proficiency, or even an expertise, in at least some of those fields. Some dictionaries use the term "Renaissance man" to describe someone with many interests or talents, while others give a meaning restricted to the Renaissance and more closely related to Renaissance ideals. Robert Root-Bernstein
5698-589: Is now the Mexican state of Guerrero . The route was suitable only for mule train, and all along the way, Humboldt took measurements of elevation. When he left Mexico a year later in 1804, from the east coast port of Veracruz, he took a similar set of measures, which resulted in a chart in the Political Essay , the physical plan of Mexico with the dangers of the road from Acapulco to Mexico City, and from Mexico City to Veracruz. This visual depiction of elevation
5852-657: Is often indirect, through a financial intermediary such as a bank , or via the purchase of notes or bonds ( corporate bonds , government bonds , or mutual bonds) in the bond market . The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary earns the difference for arranging the loan. A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their activity. Investing typically entails
6006-516: Is presented in a 2018 article with two main objectives: The model, which was designed to reflect a structural model, has five major components: Regarding the definition of the term polymathy, the researcher, through an analysis of the extant literature, concluded that although there are a multitude of perspectives on polymathy, most of them ascertain that polymathy entails three core elements: breadth, depth and integration. Breadth refers to comprehensiveness, extension and diversity of knowledge. It
6160-497: Is referred to as "wholesale finance". Institutions here extend the products offered , with related trading, to include bespoke options , swaps , and structured products , as well as specialized financing ; this " financial engineering " is inherently mathematical , and these institutions are then the major employers of "quants" (see below ). In these institutions, risk management , regulatory capital , and compliance play major roles. As outlined, finance comprises, broadly,
6314-471: Is the branch of economics that studies the interrelation of financial variables , such as prices , interest rates and shares, as opposed to real economic variables, i.e. goods and services . It thus centers on pricing, decision making, and risk management in the financial markets , and produces many of the commonly employed financial models . ( Financial econometrics is the branch of financial economics that uses econometric techniques to parameterize
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6468-485: Is the practice of protecting corporate value against financial risks , often by "hedging" exposure to these using financial instruments. The focus is particularly on credit and market risk, and in banks, through regulatory capital, includes operational risk. Financial risk management is related to corporate finance in two ways. Firstly, firm exposure to market risk is a direct result of previous capital investments and funding decisions; while credit risk arises from
6622-400: Is then often referred to as "business finance". Typically, "corporate finance" relates to the long term objective of maximizing the value of the entity's assets , its stock , and its return to shareholders , while also balancing risk and profitability . This entails three primary areas: The latter creates the link with investment banking and securities trading , as above, in that
6776-624: The Asian trade from the Spanish Philippines, having accurate maps of its location was extremely important. Humboldt set up his instruments, surveying the deep-water bay of Acapulco, to determine its longitude. Humboldt and Bonpland landed in Acapulco on 15 February 1803, and from there they went to Taxco , a silver-mining town in modern Guerrero . In April 1803, he visited Cuernavaca , Morelos . Impressed by its climate, he nicknamed
6930-766: The Avila mount with the young poet Andrés Bello , the former tutor of Simón Bolívar , who later became the leader of independence in northern South America. Humboldt met the Venezuelan Bolívar himself in 1804 in Paris and spent time with him in Rome. The documentary record does not support the supposition that Humboldt inspired Bolívar to participate in the struggle for independence, but it does indicate Bolívar's admiration for Humboldt's production of new knowledge on Spanish America. In February 1800, Humboldt and Bonpland left
7084-665: The Bronze Age . The earliest historical evidence of finance is dated to around 3000 BCE. Banking originated in West Asia, where temples and palaces were used as safe places for the storage of valuables. Initially, the only valuable that could be deposited was grain, but cattle and precious materials were eventually included. During the same period, the Sumerian city of Uruk in Mesopotamia supported trade by lending as well as
7238-581: The Diatribae upon the first part of the late History of Tithes of Richard Montagu in 1621. Use in English of the similar term polyhistor dates from the late 16th century. The term "Renaissance man" was first recorded in written English in the early 20th century. It is used to refer to great thinkers living before, during, or after the Renaissance . Leonardo da Vinci has often been described as
7392-730: The Dresden Codex and others he sought out later in European collections. His aim was to muster evidence that these pictorial and sculptural images could allow the reconstruction of prehispanic history. He sought out Mexican experts in the interpretation of sources from there, especially Antonio Pichardo, who was the literary executor of Antonio de León y Gama 's work. For American-born Spaniards ( criollos ) who were seeking sources of pride in Mexico's ancient past, Humboldt's recognition of these ancient works and dissemination in his publications
7546-570: The Guácharo cavern , where he found the oilbird , which he was to make known to science as Steatornis caripensis . He also described the Guanoco asphalt lake as "The spring of the good priest" (" Quelle des guten Priesters "). Returning to Cumaná, Humboldt observed, on the night of 11–12 November, a remarkable meteor shower (the Leonids ). He proceeded with Bonpland to Caracas where he climbed
7700-606: The Natural History Museum , which held results of Martín Sessé y Lacasta and José Mariano Mociño 's botanical expedition to New Spain . Humboldt and Bonpland met Hipólito Ruiz López and José Antonio Pavón y Jiménez of the royal expedition to Peru and Chile in person in Madrid and examined their botanical collections. Armed with authorization from the King of Spain, Humboldt and Bonpland made haste to sail, taking
7854-653: The Royal College of Mines , the Royal Botanical Garden and the Royal Academy of San Carlos as exemplars of a metropolitan capital in touch with the latest developments on the continent and insisting on its modernity. He also recognized important criollo savants in Mexico, including José Antonio de Alzate y Ramírez , who died in 1799, just before Humboldt's visit; Miguel Velásquez de León; and Antonio de León y Gama . Humboldt spent time at
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#17327653368778008-929: The Rupununi savannah had been misidentified as a lake. On 24 November 1800, the two friends set sail for Cuba, landing on 19 December, where they met fellow botanist and plant collector John Fraser . Fraser and his son had been shipwrecked off the Cuban coast, and did not have a license to be in the Spanish Indies. Humboldt, who was already in Cuba, interceded with crown officials in Havana, as well as giving them money and clothing. Fraser obtained permission to remain in Cuba and explore. Humboldt entrusted Fraser with taking two cases of Humboldt and Bonpland's botanical specimens to England when he returned, for eventual conveyance to
8162-622: The University of Frankfurt (Oder) , which his mother might have chosen less for its academic excellence than its closeness to their home in Berlin. On 25 April 1789, he matriculated at the University of Göttingen , then known for the lectures of C. G. Heyne and anatomist J. F. Blumenbach . His brother Wilhelm was already a student at Göttingen, but they did not interact much, since their intellectual interests were quite different. His vast and varied interests were by this time fully developed. At
8316-504: The gifted people of that age who sought to develop their abilities in all areas of accomplishment: intellectual, artistic, social, physical, and spiritual. In Western Europe, the first work to use the term polymathy in its title ( De Polymathia tractatio: integri operis de studiis veterum ) was published in 1603 by Johann von Wowern , a Hamburg philosopher. Von Wowern defined polymathy as "knowledge of various matters, drawn from all kinds of studies ... ranging freely through all
8470-446: The managerial application of the various finance techniques . Academics working in this area are typically based in business school finance departments, in accounting , or in management science . The tools addressed and developed relate in the main to managerial accounting and corporate finance : the former allow management to better understand, and hence act on, financial information relating to profitability and performance;
8624-724: The numerical methods applied here. Experimental finance aims to establish different market settings and environments to experimentally observe and provide a lens through which science can analyze agents' behavior and the resulting characteristics of trading flows, information diffusion, and aggregation, price setting mechanisms, and returns processes. Researchers in experimental finance can study to what extent existing financial economics theory makes valid predictions and therefore prove them, as well as attempt to discover new principles on which such theory can be extended and be applied to future financial decisions. Research may proceed by conducting trading simulations or by establishing and studying
8778-672: The Americas; he was aided in obtaining it by the German representative of Saxony at the royal Bourbon court. Baron Forell had an interest in mineralogy and science endeavors and was inclined to help Humboldt. At that time, the Bourbon Reforms sought to reform administration of the realms and revitalize their economies. At the same time, the Spanish Enlightenment was in florescence. For Humboldt "the confluent effect of
8932-745: The Bourbon revolution in government and the Spanish Enlightenment had created ideal conditions for his venture". The Bourbon monarchy had already authorized and funded expeditions, with the Botanical Expedition to the Viceroyalty of Peru to Chile and Peru (1777–88), New Granada (1783–1816), New Spain (Mexico) (1787–1803), and the Malaspina Expedition (1789–94). These were lengthy, state-sponsored enterprises to gather information about plants and animals from
9086-434: The German botanist Willdenow in Berlin. Humboldt and Bonpland stayed in Cuba until 5 March 1801, when they left for the mainland of northern South America again, arriving there on 30 March. Humboldt is considered to be the "second discoverer of Cuba" due to the scientific and social research he conducted on this Spanish colony. During an initial three-month stay at Havana , his first tasks were to survey that city properly and
9240-434: The Prussian state. The money left to Alexander's mother by Baron Holwede became instrumental in funding Alexander's explorations after her death; contributing more than 70% of his private income. Due to his youthful penchant for collecting and labeling plants, shells, and insects, Alexander received the playful title of "the little apothecary". Marked for a political career, Alexander studied finance for six months in 1787 at
9394-753: The River Rhine ). The following year, 1790, Humboldt returned to Mainz to embark with Forster on a journey to England, Humboldt's first sea voyage, the Netherlands, and France. In England, he met Sir Joseph Banks , president of the Royal Society , who had travelled with Captain Cook; Banks showed Humboldt his huge herbarium, with specimens of the South Sea tropics. The scientific friendship between Banks and Humboldt lasted until Banks's death in 1820, and
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#17327653368779548-597: The Royal Botanical Expedition to New Granada, staying there until 8 September 1801. Mutis was generous with his time and gave Humboldt access to the huge pictorial record he had compiled since 1783. Mutis was based in Bogotá, but as with other Spanish expeditions, he had access to local knowledge and a workshop of artists, who created highly accurate and detailed images. This type of careful recording meant that even if specimens were not available to study at
9702-553: The Spanish realms, assess economic possibilities, and provide plants and seeds for the Royal Botanical Garden in Madrid (founded 1755). These expeditions took naturalists and artists, who created visual images as well as careful written observations as well as collecting seeds and plants themselves. Crown officials as early as 1779 issued and systematically distributed Instructions concerning the most secure and economic means to transport live plants by land and sea from
9856-614: The University of Göttingen, Humboldt met Steven Jan van Geuns, a Dutch medical student, with whom he travelled to the Rhine in the fall of 1789. In Mainz, they met Georg Forster , a naturalist who had been with Captain James Cook on his second voyage. Humboldt's scientific excursion resulted in his 1790 treatise Mineralogische Beobachtungen über einige Basalte am Rhein (Brunswick, 1790) ( Mineralogic Observations on Several Basalts on
10010-597: The Valenciana silver mine in Guanajuato , central New Spain, at the time the most important in the Spanish empire. The bicentennial of his visit in Guanajuato was celebrated with a conference at the University of Guanajuato , with Mexican academics highlighting various aspects of his impact on the city. Humboldt could have simply examined the geology of the fabulously rich mine, but he took the opportunity to study
10164-478: The above " Fundamental theorem of asset pricing ". The subject has a close relationship with financial economics, which, as outlined, is concerned with much of the underlying theory that is involved in financial mathematics: generally, financial mathematics will derive and extend the mathematical models suggested. Computational finance is the branch of (applied) computer science that deals with problems of practical interest in finance, and especially emphasizes
10318-431: The advantages of polymathy. Some of these are about general intellectual abilities that polymaths apply across multiple domains. For example, Aristotle wrote that full understanding of a topic requires, in addition to subject knowledge, a general critical thinking ability that can assess how that knowledge was arrived at. Another advantage of a polymathic mindset is in the application of multiple approaches to understanding
10472-549: The aesthetic and structural/scientific connections between mathematics, arts and the sciences. In 2009, Sriraman published a paper reporting a 3-year study with 120 pre-service mathematics teachers and derived several implications for mathematics pre-service education as well as interdisciplinary education. He utilized a hermeneutic-phenomenological approach to recreate the emotions, voices and struggles of students as they tried to unravel Russell's paradox presented in its linguistic form. They found that those more engaged in solving
10626-529: The agricultural and commercial potential of Cuba was huge and could be vastly improved with proper leadership in the future. On their way back to Europe from the Americas, Humboldt and Bonpland stopped again in Cuba, leaving from the port of Veracruz and arriving in Cuba on 7 January 1804, staying until 29 April 1804. In Cuba, he collected plant material and made extensive notes. During this time, he socialized with his scientific and landowner friends, conducted mineralogical surveys, and finished his vast collection of
10780-522: The archetype of the Renaissance man, a man of "unquenchable curiosity" and "feverishly inventive imagination". Many notable polymaths lived during the Renaissance period, a cultural movement that spanned roughly the 14th through to the 17th century that began in Italy in the Late Middle Ages and later spread to the rest of Europe. These polymaths had a rounded approach to education that reflected
10934-744: The basis of creative giftedness ask not 'who is creative?' but 'what is the basis of creative thinking?' From the polymathy perspective, giftedness is the ability to combine disparate (or even apparently contradictory) ideas, sets of problems, skills, talents, and knowledge in novel and useful ways. Polymathy is therefore the main source of any individual's creative potential". In "Life Stages of Creativity", Robert and Michèle Root-Bernstein suggest six typologies of creative life stages. These typologies are based on real creative production records first published by Root-Bernstein, Bernstein, and Garnier (1993). Finally, his studies suggest that understanding polymathy and learning from polymathic exemplars can help structure
11088-501: The behavior of people in artificial, competitive, market-like settings. Behavioral finance studies how the psychology of investors or managers affects financial decisions and markets and is relevant when making a decision that can impact either negatively or positively on one of their areas. With more in-depth research into behavioral finance, it is possible to bridge what actually happens in financial markets with analysis based on financial theory. Behavioral finance has grown over
11242-491: The big picture—and for analysis. He says: "It takes a polymath to 'mind the gap' and draw attention to the knowledges that may otherwise disappear into the spaces between disciplines, as they are currently defined and organized". Bharath Sriraman , of the University of Montana, also investigated the role of polymathy in education. He poses that an ideal education should nurture talent in the classroom and enable individuals to pursue multiple fields of research and appreciate both
11396-404: The broader applications or implications and without integrating it". Conversely, the polymath is a person with a level of expertise that is able to "put a significant amount of time and effort into their avocations and find ways to use their multiple interests to inform their vocations". A key point in the work of Root-Bernstein and colleagues is the argument in favor of the universality of
11550-579: The business's credit policy and is often addressed through credit insurance and provisioning . Secondly, both disciplines share the goal of enhancing or at least preserving, the firm's economic value , and in this context overlaps also enterprise risk management , typically the domain of strategic management . Here, businesses devote much time and effort to forecasting , analytics and performance monitoring . (See ALM and treasury management .) For banks and other wholesale institutions, risk management focuses on managing, and as necessary hedging,
11704-891: The capital raised will generically comprise debt, i.e. corporate bonds , and equity , often listed shares . Re risk management within corporates, see below . Financial managers—i.e. as distinct from corporate financiers—focus more on the short term elements of profitability, cash flow, and " working capital management " ( inventory , credit and debtors ), ensuring that the firm can safely and profitably carry out its financial and operational objectives; i.e. that it: (1) can service both maturing short-term debt repayments, and scheduled long-term debt payments, and (2) has sufficient cash flow for ongoing and upcoming operational expenses . (See Financial management and Financial planning and analysis .) Public finance describes finance as related to sovereign states, sub-national entities, and related public entities or agencies. It generally encompasses
11858-649: The city the City of Eternal Spring . Humboldt and Bonpland arrived in Mexico City, having been officially welcomed via a letter from the king's representative in New Spain, Viceroy Don José de Iturrigaray . Humboldt was also given a special passport to travel throughout New Spain and letters of introduction to intendants, the highest officials in New Spain's administrative districts (intendancies). This official aid to Humboldt allowed him to have access to crown records, mines, landed estates, canals, and Mexican antiquities from
12012-584: The coast with the purpose of exploring the course of the Orinoco River and its tributaries. This trip, which lasted four months and covered 1,725 miles (2,776 km) of wild and largely uninhabited country, had an aim of establishing the existence of the Casiquiare canal (a communication between the water systems of the rivers Orinoco and Amazon ). Although, unbeknownst to Humboldt, this existence had been established decades before, his expedition had
12166-447: The concept of dilettancy as a contrast to the idea of profound learning that polymathy entails. Integration, although not explicit in most definitions of polymathy, is also a core component of polymathy according to the author. Integration involves the capacity of connecting, articulating, concatenating or synthesizing different conceptual networks, which in non-polymathic persons might be segregated. In addition, integration can happen at
12320-499: The creative process. That is, although creative products, such as a painting, a mathematical model or a poem, can be domain-specific, at the level of the creative process, the mental tools that lead to the generation of creative ideas are the same, be it in the arts or science. These mental tools are sometimes called intuitive tools of thinking. It is therefore not surprising that many of the most innovative scientists have serious hobbies or interests in artistic activities, and that some of
12474-555: The domain of choice, more specific abilities will be required. The more that one's abilities and interests match the requirements of a domain, the better. While some will develop their specific skills and motivations for specific domains, polymathic people will display intrinsic motivation (and the ability) to pursue a variety of subject matters across different domains. Regarding the interplay of polymathy and education, they suggest that rather than asking whether every student has multicreative potential, educators might more actively nurture
12628-461: The economy. Development finance , which is related, concerns investment in economic development projects provided by a (quasi) governmental institution on a non-commercial basis; these projects would otherwise not be able to get financing . A public–private partnership is primarily used for infrastructure projects: a private sector corporate provides the financing up-front, and then draws profits from taxpayers or users. Climate finance , and
12782-491: The entire mining complex as well as analyze mining statistics of its output. His report on silver mining is a major contribution, and considered the strongest and best informed section of his Political Essay . Although Humboldt was himself a trained geologist and mining inspector, he drew on mining experts in Mexico. One was Fausto Elhuyar , then head of the General Mining Court in Mexico City, who, like Humboldt
12936-672: The excess, intending to earn a fair return. Correspondingly, an entity where income is less than expenditure can raise capital usually in one of two ways: (i) by borrowing in the form of a loan (private individuals), or by selling government or corporate bonds ; (ii) by a corporation selling equity , also called stock or shares (which may take various forms: preferred stock or common stock ). The owners of both bonds and stock may be institutional investors —financial institutions such as investment banks and pension funds —or private individuals, called private investors or retail investors. (See Financial market participants .) The lending
13090-510: The field is referred to as quantitative finance and / or mathematical finance, and comprises primarily the three areas discussed. The main mathematical tools and techniques are, correspondingly: Mathematically, these separate into two analytic branches : derivatives pricing uses risk-neutral probability (or arbitrage-pricing probability), denoted by "Q"; while risk and portfolio management generally use physical (or actual or actuarial) probability, denoted by "P". These are interrelated through
13244-468: The field of biogeography , while his advocacy of long-term systematic geophysical measurement pioneered modern geomagnetic and meteorological monitoring. Humboldt and Carl Ritter are both regarded as the founders of modern geography as they established it as an independent scientific discipline. Between 1799 and 1804, Humboldt travelled extensively in the Americas , exploring and describing them for
13398-416: The field. Quantum finance is an interdisciplinary field, in which theories and methods developed by quantum physicists and economists are applied to solve financial problems. It represents a branch known as econophysics. Although quantum computational methods have been around for quite some time and use the basic principles of physics to better understand the ways to implement and manage cash flows, it
13552-476: The fields of the disciplines, as far as the human mind, with unwearied industry, is able to pursue them". Von Wowern lists erudition, literature, philology , philomathy , and polyhistory as synonyms. The earliest recorded use of the term in the English language is from 1624, in the second edition of The Anatomy of Melancholy by Robert Burton ; the form polymathist is slightly older, first appearing in
13706-410: The firm to the shareholders, the sources of funding and the capital structure of corporations, and the tools and analysis used to allocate financial resources. While corporate finance is in principle different from managerial finance , which studies the financial management of all firms rather than corporations alone, the concepts are applicable to the financial problems of all firms, and this area
13860-451: The first scholarly work in this area. The field is largely focused on the modeling of derivatives —with much emphasis on interest rate- and credit risk modeling —while other important areas include insurance mathematics and quantitative portfolio management . Relatedly, the techniques developed are applied to pricing and hedging a wide range of asset-backed , government , and corporate -securities. As above , in terms of practice,
14014-411: The first time from a non-Spanish European scientific point of view. His description of the journey was written up and published in several volumes over 21 years. Humboldt resurrected the use of the word cosmos from the ancient Greek and assigned it to his multivolume treatise, Kosmos , in which he sought to unify diverse branches of scientific knowledge and culture. This important work also motivated
14168-627: The flows of capital that take place between individuals and households ( personal finance ), governments ( public finance ), and businesses ( corporate finance ). "Finance" thus studies the process of channeling money from savers and investors to entities that need it. Savers and investors have money available which could earn interest or dividends if put to productive use. Individuals, companies and governments must obtain money from some external source, such as loans or credit, when they lack sufficient funds to run their operations. In general, an entity whose income exceeds its expenditure can lend or invest
14322-492: The formal proposal and Humboldt was presented to the monarch in March 1799. Humboldt was granted access to crown officials and written documentation on Spain's empire. With Humboldt's experience working for the absolutist Prussian monarchy as a government mining official, Humboldt had both the academic training and experience of working well within a bureaucratic structure. Before leaving Madrid in 1799, Humboldt and Bonpland visited
14476-400: The foundation of business and accounting . In some cases, theories in finance can be tested using the scientific method , covered by experimental finance . The early history of finance parallels the early history of money , which is prehistoric . Ancient and medieval civilizations incorporated basic functions of finance, such as banking, trading and accounting, into their economies. In
14630-553: The frozen ridges of the Cordillera Real and reached Quito on 6 January 1802, after a tedious and difficult journey. Their stay in Ecuador was marked by the ascent of Pichincha and their climb of Chimborazo , where Humboldt and his party reached an altitude of 19,286 feet (5,878 m). This was a world record at the time (for a westerner— Incas had reached much higher altitudes centuries before), but 1000 feet short of
14784-712: The fundamental risk mitigant here, investment managers will apply various hedging techniques as appropriate, these may relate to the portfolio as a whole or to individual stocks . Bond portfolios are often (instead) managed via cash flow matching or immunization , while for derivative portfolios and positions, traders use "the Greeks" to measure and then offset sensitivities. In parallel, managers — active and passive — will monitor tracking error , thereby minimizing and preempting any underperformance vs their "benchmark" . Quantitative finance—also referred to as "mathematical finance"—includes those finance activities where
14938-532: The head of it rather than the aging scientific traveler. On the postponement of Captain Baudin's proposed voyage of circumnavigation due to continuing warfare in Europe, which Humboldt had been officially invited to accompany, Humboldt was deeply disappointed. He had already selected scientific instruments for his voyage. He did, however, have a stroke of luck with meeting Aimé Bonpland , the botanist and physician for
15092-506: The heart of investment management is asset allocation — diversifying the exposure among these asset classes , and among individual securities within each asset class—as appropriate to the client's investment policy , in turn, a function of risk profile, investment goals, and investment horizon (see Investor profile ). Here: Overlaid is the portfolio manager's investment style —broadly, active vs passive , value vs growth , and small cap vs. large cap —and investment strategy . In
15246-466: The highest post in his department, but he was also entrusted with several important diplomatic missions. Neither brother attended the funeral of their mother on 19 November 1796. Humboldt had not hidden his aversion to his mother, with one correspondent writing of him after her death, "her death... must be particularly welcomed by you". After severing his official connections, he awaited an opportunity to fulfill his long-cherished dream of travel. Humboldt
15400-490: The ideals of the humanists of the time. A gentleman or courtier of that era was expected to speak several languages, play a musical instrument , write poetry , and so on; thus fulfilling the Renaissance ideal . The idea of a universal education was essential to achieving polymath ability, hence the word university was used to describe a seat of learning. However, the original Latin word universitas refers in general to "a number of persons associated into one body,
15554-545: The important results of determining the exact position of the bifurcation , and documenting the life of several native tribes such as the Maipures and their extinct rivals the Atures (several words of the latter tribe were transferred to Humboldt by one parrot). Around 19 March 1800, Humboldt and Bonpland discovered dangerous electric eels , whose shock could kill a man. To catch them, locals suggested they drive wild horses into
15708-400: The incident in several of his later writings, including his travelogue Personal Narrative (1814–29), Views of Nature (1807), and Aspects of Nature (1849). Two months later, they explored the territory of the Maipures and that of the then-recently extinct Atures Indians. Humboldt laid to rest the persistent myth of Walter Raleigh 's Lake Parime by proposing that the seasonal flooding of
15862-702: The individual and wider society. It suggests that the complex problems of the 21st century need the versatility, creativity, and broad perspectives characteristic of polymaths. For individuals, Ahmed says, specialisation is dehumanising and stifles their full range of expression whereas polymathy "is a powerful means to social and intellectual emancipation" which enables a more fulfilling life. In terms of social progress, he argues that answers to specific problems often come from combining knowledge and skills from multiple areas, and that many important problems are multi-dimensional in nature and cannot be fully understood through one specialism. Rather than interpreting polymathy as
16016-490: The intellect have the advantage of bringing attention to a large number of important facts". Humboldt was impressed with Mexico City, which at the time was the largest city in the Americas, and one that could be counted as modern. He declared "no city of the new continent, without even excepting those of the United States, can display such great and solid scientific establishments as the capital of Mexico". He pointed to
16170-445: The intellectual climate, it has since then been more common to find "passive polymaths", who consume knowledge in various domains but make their reputation in one single discipline, than "proper polymaths", who—through a feat of "intellectual heroism"—manage to make serious contributions to several disciplines. However, Burke warns that in the age of specialization, polymathic people are more necessary than ever, both for synthesis—to paint
16324-564: The island's flora and fauna that he eventually published as Essai politique sur l'îsle de Cuba . After their first stay in Cuba of three months, they returned to the mainland at Cartagena de Indias (now in Colombia), a major center of trade in northern South America. Ascending the swollen stream of the Magdalena River to Honda, they arrived in Bogotá on 6 July 1801, where they met the Spanish botanist José Celestino Mutis , head of
16478-444: The last few decades to become an integral aspect of finance. Behavioral finance includes such topics as: A strand of behavioral finance has been dubbed quantitative behavioral finance , which uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation. Quantum finance involves applying quantum mechanical approaches to financial theory, providing novel methods and perspectives in
16632-423: The late 19th century, the global financial system was formed. In the middle of the 20th century, finance emerged as a distinct academic discipline, separate from economics. The earliest doctoral programs in finance were established in the 1960s and 1970s. Today, finance is also widely studied through career -focused undergraduate and master's level programs. As outlined, the financial system consists of
16786-427: The latter, as above, are about optimizing the overall financial structure, including its impact on working capital. Key aspects of managerial finance thus include: The discussion, however, extends to business strategy more broadly, emphasizing alignment with the company's overall strategic objectives; and similarly incorporates the managerial perspectives of planning, directing, and controlling. Financial economics
16940-728: The limitations of their own knowledge. The importance of recognising these limitations is a theme that Ahmed finds in many thinkers, including Confucius , Ali ibn Abi Talib , and Nicolas of Cusa . He calls it "the essential mark of the polymath." A further argument for multiple approaches is that a polymath does not see diverse approaches as diverse, because they see connections where other people see differences. For example da Vinci advanced multiple fields by applying mathematical principles to each. Aside from Renaissance man , similar terms in use are homo universalis ( Latin ) and uomo universale ( Italian ), which translate to 'universal man'. The related term generalist —contrasted with
17094-525: The men laboring in the mines. He opened a free school for miners, paid for out of his own pocket, which became an unchartered government training school for labor. He also sought to establish an emergency relief fund for miners, aiding them following accidents. Humboldt's researches into the vegetation of the mines of Freiberg led to the publication in Latin (1793) of his Florae Fribergensis, accedunt Aphorismi ex Doctrina, Physiologiae Chemicae Plantarum , which
17248-540: The most distant countries , with illustrations, including one for the crates to transport seeds and plants. When Humboldt requested authorization from the crown to travel to Spanish America, most importantly, with his own financing, it was given positive response. Spain under the Habsburg monarchy had guarded its realms against foreigner travelers and intruders. The Bourbon monarch was open to Humboldt's proposal. Spanish Foreign Minister Don Mariano Luis de Urquijo received
17402-519: The most experimental of Humboldt's publications, since it does not have "a single ordering principle" but his opinions and contentions based on observation. For Humboldt, a key question was the influence of climate on the development of these civilizations. When he published his Vues des cordillères , he included a color image of the Aztec calendar stone , which had been discovered buried in the main plaza of Mexico City in 1790, along with select drawings of
17556-514: The most innovative artists have an interest or hobbies in the sciences. Root-Bernstein and colleagues' research is an important counterpoint to the claim by some psychologists that creativity is a domain-specific phenomenon. Through their research, Root-Bernstein and colleagues conclude that there are certain comprehensive thinking skills and tools that cross the barrier of different domains and can foster creative thinking: "[creativity researchers] who discuss integrating ideas from diverse fields as
17710-547: The multicreative potential of their students. As an example, the authors cite that teachers should encourage students to make connections across disciplines, use different forms of media to express their reasoning/understanding (e.g., drawings, movies, and other forms of visual media). In his 2018 book The Polymath , British author Waqas Ahmed defines polymaths as those who have made significant contributions to at least three different fields. Rather than seeing polymaths as exceptionally gifted, he argues that every human being has
17864-778: The nearby towns of Guanabacoa , Regla , and Bejucal . He befriended Cuban landowner and thinker Francisco de Arango y Parreño ; together they visited the Guines area in south Havana, the valleys of Matanzas Province, and the Valley of the Sugar Mills in Trinidad . Those three areas were, at the time, the first frontier of sugar production in the island. During those trips, Humboldt collected statistical information on Cuba's population, production, technology and trade, and with Arango, made suggestions for enhancing them. He predicted that
18018-664: The nuptials. Humboldt graduated from the Freiberg School of Mines in 1792 and was appointed to a Prussian government position in the Department of Mines as an inspector in Bayreuth and the Fichtel Mountains . Humboldt was excellent at his job, with production of gold ore in his first year outstripping the previous eight years. During his period as a mine inspector, Humboldt demonstrated his deep concern for
18172-537: The only literary story Humboldt ever authored, he tried to summarize the often contradictory results of the thousands of Galvanic experiments he had undertaken. In 1792 and 1797, Humboldt was in Vienna ; in 1795 he made a geological and botanical tour through Switzerland and Italy. Although this service to the state was regarded by him as only an apprenticeship to the service of science, he fulfilled its duties with such conspicuous ability that not only did he rise rapidly to
18326-547: The paradox also displayed more polymathic thinking traits. He concludes by suggesting that fostering polymathy in the classroom may help students change beliefs, discover structures and open new avenues for interdisciplinary pedagogy. Michael Araki is a professor at the UNSW Business School at the University of New South Wales, Australia. He sought to formalize in a general model how the development of polymathy takes place. His Developmental Model of Polymathy (DMP)
18480-430: The personality level, when the person is able to integrate their diverse activities in a synergic whole, which can also mean a psychic (motivational, emotional and cognitive) integration. Finally, the author also suggests that, via a psychoeconomic approach, polymathy can be seen as a "life project". That is, depending on a person's temperament, endowments, personality, social situation and opportunities (or lack thereof),
18634-486: The potential to become one: that people naturally have multiple interests and talents. He contrasts this polymathic nature against what he calls "the cult of specialisation". For example, education systems stifle this nature by forcing learners to specialise in narrow topics. The book argues that specialisation encouraged by the production lines of the Industrial Revolution is counter-productive both to
18788-414: The prehispanic era. Humboldt read the writings of Bishop-elect of the important diocese of Michoacan Manuel Abad y Queipo , a classical liberal , that were directed to the crown for the improvement of New Spain. They spent the year in the viceroyalty, traveling to different Mexican cities in the central plateau and the northern mining region. The first journey was from Acapulco to Mexico City, through what
18942-444: The present using the weighted average cost of capital for the discount factor. For share valuation investors use the related dividend discount model . Financial theory is studied and developed within the disciplines of management , (financial) economics , accountancy and applied mathematics . Abstractly, finance is concerned with the investment and deployment of assets and liabilities over "space and time"; i.e., it
19096-594: The project of a polymathic self-formation may present itself to the person as more or less alluring and more or less feasible to be pursued. James C. Kaufman , from the Neag School of Education at the University of Connecticut, and Ronald A. Beghetto, from the same university, investigated the possibility that everyone could have the potential for polymathy as well as the issue of the domain-generality or domain-specificity of creativity. Based on their earlier four-c model of creativity, Beghetto and Kaufman proposed
19250-409: The purchase of stock , either individual securities or via a mutual fund , for example. Stocks are usually sold by corporations to investors so as to raise required capital in the form of " equity financing ", as distinct from the debt financing described above. The financial intermediaries here are the investment banks . The investment banks find the initial investors and facilitate the listing of
19404-749: The rate of 20 percent per year. By 1200 BCE, cowrie shells were used as a form of money in China . The use of coins as a means of representing money began in the years between 700 and 500 BCE. Herodotus mentions the use of crude coins in Lydia around 687 BCE and, by 640 BCE, the Lydians had started to use coin money more widely and opened permanent retail shops. Shortly after, cities in Classical Greece , such as Aegina , Athens , and Corinth , started minting their own coins between 595 and 570 BCE. During
19558-724: The related Environmental finance , address the financial strategies, resources and instruments used in climate change mitigation . Investment management is the professional asset management of various securities—typically shares and bonds, but also other assets, such as real estate, commodities and alternative investments —in order to meet specified investment goals for the benefit of investors. As above, investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts or, more commonly, via collective investment schemes like mutual funds, exchange-traded funds , or REITs . At
19712-413: The relationships suggested.) The discipline has two main areas of focus: asset pricing and corporate finance; the first being the perspective of providers of capital, i.e. investors, and the second of users of capital; respectively: Financial mathematics is the field of applied mathematics concerned with financial markets ; Louis Bachelier's doctoral thesis , defended in 1900, is considered to be
19866-499: The river, which brought the eels out from the river mud, and resulted in a violent confrontation of eels and horses, some of which died. Humboldt and Bonpland captured and dissected some eels, which retained their ability to shock; both received potentially dangerous electric shocks during their investigations. The encounter made Humboldt think more deeply about electricity and magnetism, typical of his ability to extrapolate from an observation to more general principles. Humboldt returned to
20020-475: The securities, typically shares and bonds. Additionally, they facilitate the securities exchanges , which allow their trade thereafter, as well as the various service providers which manage the performance or risk of these investments. These latter include mutual funds , pension funds , wealth managers , and stock brokers , typically servicing retail investors (private individuals). Inter-institutional trade and investment, and fund-management at this scale ,
20174-493: The ship Pizarro from A Coruña , on 5 June 1799. The ship stopped six days on the island of Tenerife , where Humboldt climbed the volcano Teide , and then sailed on to the New World, landing at Cumaná , Venezuela , on 16 July. The ship's destination was not originally Cumaná, but an outbreak of typhoid on board meant that the captain changed course from Havana to land in northern South America. Humboldt had not mapped out
20328-511: The summit. Humboldt's journey concluded with an expedition to the sources of the Amazon en route for Lima , Peru. At Callao , the main port for Peru, Humboldt observed the transit of Mercury on 9 November and studied the fertilizing properties of guano , rich in nitrogen, the subsequent introduction of which into Europe was due mainly to his writings. Humboldt and Bonpland had not intended to go to New Spain, but when they were unable to join
20482-680: The territories was strictly controlled. Humboldt was able to supply Jefferson with the latest information on the population, trade agriculture and military of New Spain. This information would later be the basis for his Essay on the Political Kingdom of New Spain (1810). Polymath A polymath ( Greek : πολυμαθής , romanized : polymathēs , lit. 'having learned much'; Latin : homo universalis , lit. 'universal human') or polyhistor ( Greek : πολυΐστωρ , romanized : polyīstor , lit. 'well-learned')
20636-623: The three areas of personal finance, corporate finance, and public finance. These, in turn, overlap and employ various activities and sub-disciplines—chiefly investments , risk management, and quantitative finance . Personal finance refers to the practice of budgeting to ensure enough funds are available to meet basic needs, while ensuring there is only a reasonable level of risk to lose said capital. Personal finance may involve paying for education, financing durable goods such as real estate and cars, buying insurance , investing, and saving for retirement . Personal finance may also involve paying for
20790-544: The two shared botanical specimens for study. Banks also mobilized his scientific contacts in later years to aid Humboldt's work. Humboldt's passion for travel was of long standing. He devoted to prepare himself as a scientific explorer. With this emphasis, he studied commerce and foreign languages at Hamburg , geology at Freiberg School of Mines in 1791 under A.G. Werner , leader of the Neptunist school of geology; from anatomy at Jena under J.C. Loder ; and astronomy and
20944-476: The university. In 1794, Humboldt was admitted to the famous group of intellectuals and cultural leaders of Weimar Classicism . Goethe and Schiller were the key figures at the time. Humboldt contributed (7 June 1795) to Schiller's new periodical, Die Horen , a philosophical allegory entitled Die Lebenskraft, oder der rhodische Genius (The Life Force, or the Rhodian Genius). In this short piece,
21098-446: The use of interest. In Sumerian, "interest" was mas , which translates to "calf". In Greece and Egypt, the words used for interest, tokos and ms respectively, meant "to give birth". In these cultures, interest indicated a valuable increase, and seemed to consider it from the lender's point of view. The Code of Hammurabi (1792–1750 BCE) included laws governing banking operations. The Babylonians were accustomed to charging interest at
21252-582: The use of scientific instruments under F.X. von Zach and J.G. Köhler . At Freiberg, he met a number of men who were to prove important to him in his later career, including Spaniard Manuel del Río, who became director of the School of Mines the crown established in Mexico; Christian Leopold von Buch , who became a regional geologist; and, most importantly, Carl Freiesleben [ de ] , who became Humboldt's tutor and close friend. During this period, his brother Wilhelm married, but Alexander did not attend
21406-635: The various positions held by the institution—both trading positions and long term exposures —and on calculating and monitoring the resultant economic capital , and regulatory capital under Basel III . The calculations here are mathematically sophisticated, and within the domain of quantitative finance as below. Credit risk is inherent in the business of banking, but additionally, these institutions are exposed to counterparty credit risk . Banks typically employ Middle office "Risk Groups" , whereas front office risk teams provide risk "services" (or "solutions") to customers. Additional to diversification ,
21560-539: The voyage. Discouraged, the two left Paris for Marseilles , where they hoped to join Napoleon Bonaparte in Egypt, but North Africans were in revolt against the French invasion in Egypt and French authorities refused permission to travel. Humboldt and Bonpland eventually found their way to Madrid , where their luck changed spectacularly. In Madrid, Humboldt sought authorization to travel to Spain's realms in
21714-399: The world—was making it increasingly difficult for individual scholars to master as many disciplines as before. Thus, an intellectual retreat of the polymath species occurred: "from knowledge in every [academic] field to knowledge in several fields, and from making original contributions in many fields to a more passive consumption of what has been contributed by others". Given this change in
21868-670: Was a boon. He read the work of exiled Jesuit Francisco Javier Clavijero , which celebrated Mexico's prehispanic civilization, and which Humboldt invoked to counter the pejorative assertions about the new world by Buffon, de Pauw, and Raynal. Humboldt ultimately viewed both the prehispanic realms of Mexico and Peru as despotic and barbaric. However, he also drew attention to indigenous monuments and artifacts as cultural productions that had "both ... historical and artistic significance". One of his most widely read publications resulting from his travels and investigations in Spanish America
22022-616: Was a center of learning in the U.S., Humboldt met with some of the major scientific figures of the era, including chemist and anatomist Caspar Wistar , who pushed for compulsory smallpox vaccination, and botanist Benjamin Smith Barton , as well as physician Benjamin Rush , a signer of the Declaration of Independence , who wished to hear about cinchona bark from a South American tree, which cured fevers. Humboldt's treatise on cinchona
22176-572: Was a compendium of his botanical researches. That publication brought him to the attention of Johann Wolfgang von Goethe , who had met Humboldt at the family home when Alexander was a boy, but Goethe was now interested in meeting the young scientist to discuss metamorphism of plants. An introduction was arranged by Humboldt's brother, who lived in the university town of Jena, not far from Goethe. Goethe had developed his own extensive theories on comparative anatomy. Working before Darwin, he believed that animals had an internal force, an urform , that gave them
22330-406: Was a welcome foreign scientist and mining expert, the Spanish crown had established fertile ground for Humboldt's investigations into mining. Spanish America's ancient civilizations were a source of interest for Humboldt, who included images of Mexican manuscripts (or codices) and Inca ruins in his richly illustrated Vues des cordillères et monuments des peuples indigènes de l'Amerique (1810–1813),
22484-452: Was able to spend more time on writing up his research. He had used his own body for experimentation on muscular irritability, recently discovered by Luigi Galvani and published his results, Versuche über die gereizte Muskel- und Nervenfaser (Berlin, 1797) ( Experiments on Stimulated Muscle and Nerve Fibres ), enriched in the French translation with notes by Blumenbach. With the financial resources to fund his scientific travels, he sought
22638-645: Was born in Berlin in Prussia on 14 September 1769. He was baptized as a baby in the Lutheran faith, with the Duke of Brunswick serving as godfather. His father, Alexander Georg von Humboldt (1720-1779), belonged to a prominent German noble family from Pomerania . Although not one of the titled gentry, he was a major in the Prussian Army , who had served with the Duke of Brunswick . At age 42, Alexander Georg
22792-668: Was himself a scientist, Humboldt wrote to him saying that he would be in the United States. Jefferson warmly replied, inviting him to visit the White House in the nation's new capital. In his letter Humboldt had gained Jefferson's interest by mentioning that he had discovered mammoth teeth near the Equator. Jefferson had previously written that he believed mammoths had never lived so far south. Humboldt had also hinted at his knowledge of New Spain. Arriving in Philadelphia , which
22946-420: Was not published until 1806. Rather than describe the administrative center of Caracas, Humboldt started his researches with the valley of Aragua, where export crops of sugar, coffee, cacao, and cotton were cultivated. Cacao plantations were the most profitable, as world demand for chocolate rose. It is here that Humboldt is said to have developed his idea of human-induced climate change. Investigating evidence of
23100-413: Was part of Humboldt's general insistence that the data he collected be presented in a way more easily understood than statistical charts. A great deal of his success in gaining a more general readership for his works was his understanding that "anything that has to do with extent or quantity can be represented geometrically. Statistical projections [charts and graphs], which speak to the senses without tiring
23254-603: Was published in English in 1821. After arriving in Washington D.C, Humboldt held numerous intense discussions with Jefferson on both scientific matters and also his year-long stay in New Spain. Jefferson had only recently concluded the Louisiana Purchase , which now placed New Spain on the southwest border of the United States. The Spanish minister in Washington, D.C. had declined to furnish the U.S. government with information about Spanish territories, and access to
23408-492: Was rewarded for his services in the Seven Years' War with the post of royal chamberlain . He profited from the contract to lease state lotteries and tobacco sales. Alexander's grandfather was Johann Paul von Humboldt (1684-1740), who married Sophia Dorothea von Schweder (1688-1749), daughter of Prussian General Adjutant Michael von Schweder (1663-1729). In 1766, his father, Alexander Georg married Maria Elisabeth Colomb ,
23562-550: Was the Essai politique sur le royaum de la Nouvelle Espagne , quickly translated to English as Political Essay on the Kingdom of New Spain (1811). This treatise was the result of Humboldt's own investigations as well as the generosity of Spanish colonial officials for statistical data. Leaving from Cuba, Humboldt decided to take an unplanned short visit to the United States. Knowing that the current U.S. president, Thomas Jefferson ,
23716-492: Was trained in Freiberg. Another was Andrés Manuel del Río , director of Royal College of Mines, whom Humboldt knew when they were both students in Freiberg. The Bourbon monarchs had established the mining court and the college to elevate mining as a profession, since revenues from silver constituted the crown's largest source of income. Humboldt also consulted other German mining experts, who were already in Mexico. While Humboldt
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