Classical finance has undergone a major change in recent years. In our modern world, where risk becomes more complex and difficult to calculate, more sophisticated mathematical techniques and products are needed to quantify such new risks. The financial sector should have a solid structure in...

In this chapter, we have scrutinized the adjustment speed of Borsa Istanbul index sub-sectors during the pre-crisis, crisis, and post-crisis periods. The classical dynamic partial adjustment model developed by Flannery and Rangan (Journal of Financial Economics 79:469-506, 2006), which is...