Explain drawbacks of Brownian motion
Explain drawbacks of Brownian motion.
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One of the unfortunate characteristics of Brownian motion is that this provides returns distributions with tails which are unrealistically shallow. During practice, asset returns have tails which are much fatter than those specified by the normal distribution of Brownian motion. There is even several evidence that the distribution of returns has infinite second moment. In spite of this, and the existence of financial theories which do incorporate such fat tails, Brownian motion is easily the most common model used to shown random walks in finance.
Suppose current settlement price on a CME DM futures contract is $0.6080/DM. You contain a long position in futures contract. Presently your margin account contain a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.598
From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax
A Program Element is a subdivision of a Major Program?
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Where is Crash Metrics Applicable?
The United States contain experienced continuous present account deficits since the early 1980s. What do you think are the foremost reason for the deficits? What would be the consequences of continuous U.S. present account deficits?The present a
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