Illustrates example of mathematics in Quantitative Finance
Give an example of different types of mathematics found in Quantitative Finance?
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Example of different types of mathematics found in Quantitative Finance:
For option pricing the classical model can be written as a partial differential equation. Though, the same model also has a probabilistic interpretation in form of expectations.
Explain Capital Asset Pricing Model returns on individual assets and Arbitrage Pricing Theory returns on investments.
Elaborate the statement: Coefficient of variation is a better risk calculator to use than the standard deviation when estimating the risk of capital budgeting projects.
Which is lesser for a particular company: the cost of equity or the cost of debt (ignoring taxes)? Explain.
We focus more on cash flows rather than profits when estimating proposed capital budgeting projects. Explain.
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What is the function of sinking fund in the retirement of an outstanding bond issue?
Explain probabilities and statistics for quantifying risk in finance.
What is Static Hedging?
Explain Central Limit Theorem with an example of random variables.
Explain the procedure of bringing a new international bond issue to market.A borrower desiring to increase funds through issuing Eurobonds to the investing public will contact an investment banker and ask it to serve as lead manager of an underw
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