Explain normal distribution model proposed by L.Bachelier
Explain normal distribution model proposed by Louis Bachelier.
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He proposed a model as a simple normal distribution, for equity prices and built on this a model for pricing the almost unheard of alternatives. His model consists of many of the seeds for later work, although lay ‘dormant’ for many, many years.
Explain in brief the difference between financial risk and business risk?
How is Information Ratio calculated?
What is Crash Metrics?
What is shadow Greeks?
Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding,
Elucidate the advantages and disadvantages of the aggressive working capital financing approach?
What are uses of Poisson Process in Finance?
What are a bank's primary reserves? When the Fed sets reserve requirements, what is its primary goal?
Explain stochastic volatility.
Who described the criteria which make a risk measure coherent?
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