Explain when standard deviation is not relevant
Explain when standard deviation is not relevant?
Expert
However, it is only meaningful when the conditions for the CLT are satisfied. For illustration, if we only have a small number of investments, or when the investments are correlated, or when they don’t have finite variance, then standard deviation cannot be relevant.
Illustrates an example of Value at Risk Used?
Explain probability of some buses having arrived when the Poisson process is utilized.
With whom Sharpe is shared Nobel Prize (1990)?
Who introduced Long Term Capital Management Mess?
What are the competing effects in a dispersion trade?
Normal 0 false false
How are foreign exchange transactions among international banks settled?The interbank market is network of correspondent banking relationships, along with large commercial banks maintaining demand deposit accounts along with one another, known a
What is Maximum Likelihood Estimation?
What are the ways to choose the members of the board of directors of a corporation? Who do these board members owe their primary allegiance?
Explain the stochastic volatility in an option-pricing.
18,76,764
1922549 Asked
3,689
Active Tutors
1457402
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!