Add random numbers, find normal, multiply, is it important
While you have some random numbers for adding, get normal them then multiply them, is it important in finance?
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This is significant in finance because a stock price after a long period can be thought of like its value on several starting day multiplied by many random numbers, each showing a random return. Therefore, whatever the distribution of returns is, the logarithm of the certain stock price will be normally distributed. We tense to suppose that equity returns are normally distributed, and equities, equivalently themselves are lognormally distributed.
Explain how and why to resolve a “ranking conflict” between the internal rate of return and the net present value.
One can state that the Bretton Woods system was programmed to an eventual demise. Remark on this proposition.The answer to this question is associated to the Triffin paradox. Under gold-exchange system, the reserve-currency country must run BOP
Illustrates an example of complete market with volatility?
Categorize the issues of Knight.
What are uses of Poisson Process in Finance?
Illustrates the term serial autocorrelation?
Explain in brief about the time value of money?
A risk-adjusted discount rate improves capital budgeting decision making compared to using a single discount rate for all projects. Explain.
Explain some examples of mutually exclusive projects.
Explain the term CGARCH as of the GARCH’s family.
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