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.
How does the theory of comparative advantage associate to the currency swap market?Name recognition is very important in the international bond market. Without it, even a creditworthy corporation will determine itself paying higher interest rat
What can a financial institution frequently do for a surplus economic unit that it would encompass difficulty doing for itself if the SEU (surplus economic unit) were to deal directly with a DEU (deficit economic unit)?
What is half Kelly?
What is Hedge?
Explain no arbitrage in classical finance theory and derivatives theory.
What is Margin Hedging?
A risk-adjusted discount rate improves capital budgeting decision making compared to using a single discount rate for all projects. Explain.
When the quantitative finance is disrepute?
Explain the example of equilibrium model as Capital Asset Pricing Model.
Who concluded that stock prices were unpredictable and coined the phrase ‘market efficiency’?
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