Why is dispersion trading become unsuccessful
Why is dispersion trading become unsuccessful?
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• This is too detailed a strategy to cope along with large numbers of contracts along with bid–offer spreads. • You must delta hedge the positions that could be costly.• You should be careful of downside throughout market crashes.
Discuss risk from the perspective of the CAPM (Capital Asset Pricing Model).
Who gave the pricing of options to the simulation of random asset paths?
How was Markowitz show that one would invest in the first stock or may be sold the second stock?
What are the Forward and Backward Equations?
Explain Poisson process in Brownian motion.
Security returns are found to be less correlated across countries than in a country. Why can it be?Security returns are less correlated possibly because countries are distinct from each other in terms of industry structure, macroeconomic policie
What is half Kelly?
What is Monte Carlo Simulation?
Differentiate between compound interest and discounting.
What are the interest areas for financial managers when they go through pro forma financial statements?
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