Essays about: "financial literacy and loan default"

Found 1 essay containing the words financial literacy and loan default.

  1. 1. Is Your Peer a Lemon? Relative Assessment of Risk Remuneration on the P2P Lending Market

    University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomi

    Author : Dmitrijs Golubnicijs; [2012]
    Keywords : Peer-to-peer P2P lending; Social Lending; Risk Remuneration; Sharpe ratio; Individual investment decision making;

    Abstract : Using a sample of 11,752 loans from the Prosper peer-to-peer lending marketplace, this study employs a 5-stage methodology in order to analyze and compare the attractiveness of the P2P lending market with traditional investment alternatives in terms of risk remuneration. Results of default probability modeling in Stage I, loan expected return calculation in Stage II and efficiency frontier construction in Stage III present the evidence of high potential of P2P lending market as an investment alternative to the stock market, assuming maximum diversification opportunities and lender efficiency in interest rate setting. READ MORE