Illustrates an example of Co-integration
Illustrates an example of Co-integration?
Expert
Assume you have two stocks S1 and S2 and you get that S1 − 3 S2 is stationary; therefore this combination never strays more far from its mean. When one day it ‘spread’ is mainly large then you would have sound statistical reasons for thinking as spread might shortly decrease, giving you a possible source of statistical arbitrage profit. It can be the basis for pairs trading.
Explain technical terms in Girsanov’s Theorem.
What are retained earnings? Why are they important?
Explain in brief the way to incorporate management goals into pro forma financial statements.
How is volatility associated to the standard deviation of the underlying’ return?
Who proposed the concept of market efficiency?
A risk-adjusted discount rate improves capital budgeting decision making compared to using a single discount rate for all projects. Explain.
Explain how portfolio’s value for realization calculated? Give an example.
Define the term pricing derivatives in Monte Carlo simulations.
Unfocused Books is a discount retail bookshop that has three departments: fiction, non-fiction and children’s books. Sales and cost of sales for each department are shown below. In addition, each department has its own fixed costs for staffing and takes a one-third share of rental and management cos
Why is Crash Metrics very robust?
18,76,764
1932660 Asked
3,689
Active Tutors
1424473
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!