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?
Expert
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.
Describe the concept of the world beta of a security.The world beta measures the sensitivity of returns to security to returns to the world market portfolio. This is a measure of the systematic risk of the security in global setting. Statistically, the world beta can be des
Elaborate: The increased common stock cash dividend can send a signal to the common stockholders.
What should a borrower consider before issuing dual-currency bonds? What should an investor consider before investing in dual-currency bonds?
If taxable income is 82,900 and filing single, what is tax liability?
Illustrates an example of binomial model as complete market?
What is rehedging the portfolio?
What are a callable bond and a putable bond? How can each of these bonds affect their market interest rates?
Where can a profitable strategy exist?
How is marking to market straightforward?
When is the close relationship breaks-down in hedging reasons?
18,76,764
1953962 Asked
3,689
Active Tutors
1440066
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!