Insurance provides significant risk management to a broad public, and is an essential tool for promoting human welfare. By pooling large numbers of independent or low-correlated risks, insurance providers can minimize overall risk. The risk management is tailored to individual circumstances and reflects centuries of insurance industry experience with real risks and with moral hazard and selection bias issues. Probability theory and statistical tools help to explain how insurance companies use risk pooling to minimize overall risk.

Portfolio diversification is the most fundamental concept of risk management. The allocation of financial resources in stocks, bonds, riskless, assets, oil and other assets determine the expected return and risk of a portfolio. Taking account of covariances and expected returns, investors can create a diversified portfolio that maximizes expected return for a given level of risk. An important mission of financial institutions is to provide portfolio-diversification services.

Technology and innovation underlie finance. In order to manage risks successfully, particularly long-term, we must pool large amounts of risk among many, diverse people and overcome barriers such as moral hazard and erroneous framing. Inventions such as insurance contracts and social security, and information technology all the way from such simple things as paper, and the postal service to modern computers have helped to manage risks and to encourage financial systems to address issues pertaining to risk. The tax and welfare system is one of the most important risk management systems.

Statistics and mathematics underlie the theories of finance. Probability Theory and various distribution types are important to understanding finance. Risk management, for instance, depends on tools such as variance, standard deviation, correlation, and regression analysis. Financial analysis methods such as present values and valuing streams of payments are fundamental to understanding the time value of money and have been in practice for centuries.

Would have Cervantes deserved such recognition, had he not written the Quixote? The answer is no. However, he would probably be remembered for some of his other works. Two of The Exemplary Stories, significantly connected together, are commented in this lecture. "The Deceitful Marriage" deconstructs marriage both as a social institution and as a narrative tool: Cervantes manipulates literary conventions by beginning with what is normally the end of a story, a marriage, and works backwards to undue a union that never took place legitimately.

González Echevarría focuses on the end of the Quixote. He starts referring to Cervantes' humor, which allows us to see humanity in contrast to the mad hero and thus appreciate everyone's folly. The novel's plot, with Don Quixote's repeated returns home, suggests that life consists of going and coming back, and this is probably why we approach the end by returning to the beginning. In his last return home Don Quixote has conquered himself. By accepting his defeat by the Knight of the White Moon, who is a reflection of himself, he accepts himself for what he is.

As we approach the end of the novel, Cervantes compresses and combines elements from different types of romances (morisco, Greek, pastoral) in what seems to be an attempt to create a new literary genre; the modern novel. In the episodes in Barcelona, the prank with the talking head makes literal the figure of prosopopeia; Don Quixote's visit to the printing shop explores the very origin of the book; the sign the boys hang on Don Quixote's back also reduces him to language.

According to González Echevarría, Don Quixote's epic task within the novel is to control his madness by accepting the vanity of his dreams and the futility of his quest. The protagonist's change started with Sancho's enchantment of Dulcinea, and peaked in the cave of Montesinos. Now, he displays his deepened wisdom in the counsel to his squire on how to govern the island of Barataria.

The developments of Part II of the Quixote are based and measured against Part I. In the episode of the afflicted matron, the story about Countess Trifaldi, and Clavileño, we see these expansions (the presence of love and death, the black color, the monsters, the clashing elements, the cross-dressing, the grotesque, the inclusiveness) which reach the limits of representation, in consonance with baroque aesthetics.

The fact that the second part of the Quixote is the first political novel is manifested in several ways. The second part adds (taken from the picaresque novel) geographic concreteness to its realistic portrayal of Spanish life and sociopolitical background to the novel: the episode of the boat shows the contrast between Don Quixote's Ptolemaic obsolete notions of geography and the new Copernican conception of an infinite universe. The duke and duchess represent the Spanish idle upper classes in debt and kept financially afloat through loans, like the Spanish Crown.