How is Sortino Ratio Work
How is Sortino Ratio Work?
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This measure avoids upside ‘risk’ completely. Nevertheless, if returns are expected to be normally distributed semi-variance will be statistically noisier than the variance since fewer data points are used into its calculation.
Explain the term copula in current financial crisis.
A stock whose value is now $44.75 is growing on average by 15 percent per annum. Its volatility is 22 percent. The interest rate is 4 percent. You need to value a call option along with a strike of $45, expiring in two months’ time. So, what can you do?
How can we use real probabilities for pricing derivatives?
Explain when standard deviation is not relevant?
Describe difference between the retail or client market and the wholesale or interbank market for foreign exchange?The market for foreign exchange can be distinguished as two-tier market. One tier is the wholesale or interbank market and the ot
How can stocks are squeezed in the Black–Scholes framework when it falls dramatically?
Explain deterministic model.
What is meant through the terminology that an option is in-, at-, or out-of-the-money? A call (put) alternative with St > E (E > St) is referred to as trading in-the-money. If St Nor
What will happen when a bank gives discount interest on a loan?
Illustrates an example an arbitrage opportunity?
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