Who explain short-term interest rate by a stochasti
Who illustrated short-term interest rate through a stochastic differential equation?
Expert
Oldrich Vasicek illustrated the short-term interest rate through a stochastic differential equation of the form:
dr = µ(r, t) dt + σ(r, t) dX.
The bond pricing equation is a parabolic partial differential equation, same to the Black–Scholes equation.
How Value at Risk simply calculated?
What is Generalized Auto Regressive Conditional Heteroscedasticity?
How is a Sharpe ratio maximized? Answer: Choosing the portfolio which maximizes the Sharpe ratio, will provide you the Market Portfolio.
Explain decision features in Monte Carlo method.
Explain Central Limit Theorem with an example of random variables.
In what circumstances would market to book ratios of value be misleading?
Whereas you were visiting London, you purchased a Jaguar for £35,000, payable in three months. You have sufficient cash at your bank in New York City that pays 0.35% interest per month, compounding monthly, to pay for the car. At present, the spot exchan
Explain finite-difference method in finance.
Explain the term utility function and uses.
What is the reason that a company would probably not issue $1 million worth of fresh common stock in January to evade all short-term borrowing during the year?
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