Add random numbers, find normal, multiply, is it important
While you have some random numbers for adding, get normal them then multiply them, is it important in finance?
Expert
This is significant in finance because a stock price after a long period can be thought of like its value on several starting day multiplied by many random numbers, each showing a random return. Therefore, whatever the distribution of returns is, the logarithm of the certain stock price will be normally distributed. We tense to suppose that equity returns are normally distributed, and equities, equivalently themselves are lognormally distributed.
Which is the deciding factor for rejecting or accepting proposed projects while using net present value?
How was Markowitz show that one would invest in the first stock or may be sold the second stock?
Explain valid criticisms of Value at Risk.
discuss the criteria for a good international monetary system
How two stocks fully correlated over short timescales?
Explain Treasury bill and risk involved with it.
What is the matching principle of working capital financing and also explain the benefits of following this principle.
What is Value at Risk?
Why is Value at Risk important? Specified with reasons?
How approximately is future profit calculated?
18,76,764
1930991 Asked
3,689
Active Tutors
1427065
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!