Computer system and method for pricing financial and...

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

Reexamination Certificate

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Reexamination Certificate

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07315842

ABSTRACT:
The invention is a computer-implemented system and method, and a computer-readable medium for use with computer means, that enables portfolio managers to price, on a risk-adjusted basis, any traded or under written risk vehicle in finance and insurance that has a historically-known or computer-generated probability distribution. More importantly, the invention provides a universal approach to pricing assets and liabilities traded on an exchange or over-the-counter market, or underwritten for direct risk-transfer, even if those assets and liabilities are grouped or segregated, or whose prospective outcomes may alternate between positive or negative values.

REFERENCES:
patent: 6055517 (2000-04-01), Friend et al.
patent: 6061662 (2000-05-01), Makivic
patent: 6360210 (2002-03-01), Wallman
Wang, Shaun, “Insurance pricing and increased limits ratemaking by proportional hazards transforms”, Insurance: Mathematics and Economics. 17 (1995) 43-54. (12 pages).
Wang, Shaun S., “A Class of Distortion Operators for Pricing Financial and Insurance Risks,” Journal of Risk and Insurance, 2000, pp. 15-36, vol. 67, No. 1.

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