What is probability of probabilistic concept in distribution
What is the probability of probabilistic concepts occurrence in distribution?
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When measuring risk we frequently use probabilistic concepts. But this need having a distribution for the randomness in investments and probability densities function as illustration. With adequate data or a decent adequate model we may have a good idea regarding the distribution of returns. Though, without the data, or while embarking into unknown territory we may be fully in the dark as to probabilities. This is particularly true when looking at scenarios that are incredibly rare, or have never even occurred before. For example, we may have a good concept of the results of an alien invasion; finally many scenarios have been explored in the movies.
Where are Monte Carlo simulations used?
Suppose you are the swap bank in the Eli Lilly swap. Create an example of how you might lay off the swap to an opposing counterparty.The swap bank may attempt to lay off the swap on Japanese MNC which has issued yen denominated debt to finance
What are the competing effects in a dispersion trade?
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
In integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing global crisis. What sort of measures would you suggest to stop the recurrence of Asia-type crisis? Q : Wacc Great Corporation has the Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding
Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding
Elucidate: Companies with rapidly growing levels of sales do not need to worry about raising funds from outside the organisation.
How is Sharpe ratio calculated?
How can we use real probabilities for pricing derivatives?
Explain the tool of Discretization methods in Quantitative Finance.
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