How two stocks fully correlated over short timescales
How two stocks fully correlated over short timescales?
Expert
Two stocks may be completely correlated over short timescales until now diverge in the long run, with one growing and another decaying. On the other hand, two stocks may follow each other, never being additional than an exact distance apart, but along with any correlation, negative, positive or varying. When we are delta hedging then maybe the short timescale correlation issues but not, if we are holding stocks for a long time in unchanged portfolio. To notice whether two stocks stay close together we require a definition of stationarity.
factors of the growth of the margin market in recent years
What are the reasons that Inventory is sometimes thought of as a needed evil.
Explain the factors that responsible for the recent surge in international portfolio investment (IPI)?
Opportunity costs affect the capital budgeting decision-making process. Explain.
What is Put–Call Parity?
At Milan bourse, Fiat stock closed at EUR31.90 per share on Friday, September 10, 1999. Fiat trades as & ADR on the NYSE. One underlying Fiat shares equivalent one ADR. On September 10, the $/EUR spot exchange rate was $1.0367/EUR1.00. At this exchange
Which is the deciding factor for rejecting or accepting proposed projects while using net present value?
Differentiate in brief a defined benefit and a defined contribution pension plan.
Consider 8.5 % Swiss franc/U.S. dollar dual currency bonds which pay $666.67 at maturity per SF1,000 of par value. Describe implicit SF/$ exchange rate at maturity? Will the investor be better or worse off at maturity if the real SF/$ exchange rate
Compare and contrast mutual and stockholder-owned savings and loan associations.
18,76,764
1925530 Asked
3,689
Active Tutors
1430719
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!