How are you able to measure real probabilities
How are you able to measure real probabilities?
Expert
In classical stochastic differential equation models it implies knowing the real drift rate, frequently denoted with µ for equities. It can be very hard, very harder than measuring volatility. Is this even possible to say whether we are in bear market or a bull? Frequently not! And you require to project forward, again still harder, and harder than also forecasting volatility.
What is Gamma Hedging?
Why do you think closed-end country funds frequently trade at a premium or discount?CECFs trade at premium or discount since capital markets of the home & host countries are segmented, preventing cross-border arbitrage. If cross-border arbit
Would exchange rate alter always enhance the risk of foreign investment? Describe the condition under which exchange rate changes may in fact reduce the risk of foreign investment. Exchange rates changes require no
What is a Wiener Process/Brownian Motion?
How is Utility Function Used?
Provide three examples of mutually exclusive projects.
What is the reason that variation coefficient mostly considered a better risk measure while comparing different projects than the standard deviation?
What is excess return?
What is Maximum Likelihood Estimation?
Explain the main motive behind the experience approach to forecasting?
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