Explain when standard deviation is not relevant
Explain when standard deviation is not relevant?
Expert
However, it is only meaningful when the conditions for the CLT are satisfied. For illustration, if we only have a small number of investments, or when the investments are correlated, or when they don’t have finite variance, then standard deviation cannot be relevant.
How is Utility Function Used?
$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.
What is stable Levy Distribution?
What are the advantages of “collecting early” and how do companies try to do this?
Explain Central Limit Theorem with an example of random variables.
Explain in brief the non-diversifiable risk and ways to measure it?
Explain the Deterministic modelling approach in Quantitative Finance.
What is Kelly Fraction? Explain.
Illustrates the way to optimize hedge.
Which is lesser for a particular company: the cost of equity or the cost of debt (ignoring taxes)? Explain.
18,76,764
1933477 Asked
3,689
Active Tutors
1411773
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!