Explain number of dimensions in Monte Carlo method
Explain number of dimensions in Monte Carlo method.
Expert
Number of dimensions: For each random factor you will have to simulate a time series. It will obviously take longer to do this, but the time will only be proportional to number of factors, which isn’t so bad. It makes Monte Carlo methods perfect for higher dimensions when the finite-difference methods begin to crawl.
Remark on the following statement: "As the U.S. imports more than it exports, it is essential for the U.S. to import capital from foreign countries to finance its present account deficits."The statement presupposes that the U.S. present account
Describe criteria for a ‘good' international monetary system.A good international monetary system have to provide (I) adequate liquidity to the world economy, (ii) s
What is Monte Carlo Simulation?
Define one feature of co-integration for dynamic relationship?
A firm is evaluating two mutually exclusive projects that have unequal lives. Evaluate the projects using the equivalent annual annuity approach (EAA), recommend which project they should select. The firm's cost of capital has been determined to be 18 percent, and the projects have the following i
Normal 0 false false
Explain reward versus risk.
How is a portfolio optimized for the greatest expected return in a prescribed risk level?
In May 1995, Japan Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds while the exchange rate was 80 yen per dollar. The company liquidated the investment one year afterwards for $10,650,000. The exchange rate turned out 110 yen per dollar
Explain the modern methodology for calculating tail risk by using Extreme Value Theory.
18,76,764
1933260 Asked
3,689
Active Tutors
1448294
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!