Determine normal distribution with mean & standard deviation
How are normal distributions with mean and standard deviation in a given period shown?
Expert
In Modern Portfolio Theory the return on individual assets are shown by normal distributions with specific mean and standard deviation over a given period. Therefore, one asset might have an annualized expected return of 5 percent and an annualized standard deviation or volatility of 15%. The other might have an expected return of −2 percent and a volatility of 10 percent. Before Markowitz, one would only have invested in the first stock, or maybe sold the second stock short.
What are those factors that common stockholders would consider while deciding how much cash dividends they want from corporation in which they have invested?
When we can use Finite difference numerical method?
A stock whose value is now $44.75 is growing on average by 15 percent per annum. Its volatility is 22 percent. The interest rate is 4 percent. You need to value a call option along with a strike of $45, expiring in two months’ time. So, what can you do?
Describe basic objectives of the Bretton Woods system?The basic objectives of the Bretton Woods system are to attain exchange rate stability and promote international trade & development.
What is super hedging?
Hebner Housing Corporation consist of forecast the given numbers for the upcoming year as follows: • Net income = 180,000. • Sales = $1,000,000. &b
Explain the tool of Discretization methods in Quantitative Finance.
Who introduced the concept of company’s debt associated to the strike price and the maturity of the debt?
Explain the formula of hedging contract.
What are the difference between complete market and binomial model?
18,76,764
1945928 Asked
3,689
Active Tutors
1437163
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!