Explain the features of Brownian motion
Explain the features of Brownian motion.
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Brownian motion is a very simple yet very rich process, very useful for representing many random processes particularly those in finance. Its simplicity permits calculations and analysis which would not be possible with other processes.
Assume you are a euro-based investor who just sold Microsoft shares which you had bought six months ago. You had invested 10,000 euros to purchase Microsoft shares for $120 per share; the exchange rate was $1.15 per euro. You sold the stock for $135 per share
Explain valid criticisms of Value at Risk.
Would there be positive interest rates on bonds in a world with absolutely no risk (no default risk, maturity risk, and so on)? Why would a lender demand and a borrower be willing to pay, a positive interest rate in such a no risk world?
Explain finite-difference method in finance.
What is Crash Metrics?
Explain the work of the financial manager in a business firm.
Why is traditional, simple VaR measurement not coherent?
What are the characteristics of an efficient market?
What did you meant by the Value of a Contract? Answer: Value usually implies the theoretical cost of building up a new contract by simpler products, such as replicat
What are the benefits of the (just-in-time) JIT inventory control system?
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