Why is volatility annualized standard deviation of return
Why is volatility annualized standard deviation of return?
Expert
Because it is a statistical measure, essentially backward looking, and since volatility seems to vary, and we need to know what this will be in the future, and since people have various views on what volatility will be in future, things are not which simple.
Illustrates an example of dispersion trading?
What is Kelly Fraction? Explain.
Give explanation: The banks try to make short-term self-liquidating loans to businesses.
Give an example of dynamic hedging.
What is forward equation?
Explain Strong-form efficiency in Efficient Markets Hypothesis.
In May 1995, Japan Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds while the exchange rate was 80 yen per dollar. The company liquidated the investment one year afterwards for $10,650,000. The exchange rate turned out 110 yen per dollar
Suppose today's settlement price on a CME DM futures contract is $0.6080/DM. You have a short position in one contract. Your margin account presently has a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.5989. Compu
What is the validity of the Efficient-market hypothesis?
Explain the term Value at Risk.
18,76,764
1948109 Asked
3,689
Active Tutors
1423717
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!