Regarding the reply for your second reason, you are correct but still there is small doubt which is risk neutral probabilities are market concensus probabilities in a risk neutral world. As it is a market concensus estimate cant it change with time are the assumption is to keep it constant.
Regarding the reply for your second reason, you are correct but still there is small doubt which is risk neutral probabilities are market concensus probabilities in a risk neutral world. As it is a market concensus estimate cant it change with time are the assumption is to keep it constant.
This black model thing got out of my head while solving. Yes black model does take the future prices in the model and also betting is done on FRAs. Thank you.
This black model thing got out of my head while solving. Yes black model does take the future prices in the model and also betting is done on FRAs. Thank you.
No, I know this. I wanted to asked how things happen in the long run under mundell fleming model. What is the explaination for long run? Because in the solution they have made us understand by using portfolio balance approach.
No, I know this. I wanted to asked how things happen in the long run under mundell fleming model. What is the explaination for long run? Because in the solution they have made us understand by using portfolio balance approach.
I agree, but the assumptions behind that the regression model used is an AR model and the time series is a mean reverting one. Agad humlog AR model use karte hai, toh hi humlog ko first differencing karna padega to remove the problem of unit root. Option C mein serf linear regression bolke chod diyaRead more
I agree, but the assumptions behind that the regression model used is an AR model and the time series is a mean reverting one. Agad humlog AR model use karte hai, toh hi humlog ko first differencing karna padega to remove the problem of unit root. Option C mein serf linear regression bolke chod diya hai, they must have assumed regression 1 as the liner regression nehi toh normal liner regression kyu nehi use kar sakte hai? normal linear regression se trend bhi pakad sakte hai, as variance increase over time and mean reverting level is undefined shows ki trending time series hai. What do you think?
Replying to my first doubts explaination, the thing you told i also agree with the same but if you see the first line of the solution closely then you would know why my doubt arose. By reading that sentence it feels like if a time series is randam walk then B0, B1 will yeild 0 and the error term wilRead more
Replying to my first doubts explaination, the thing you told i also agree with the same but if you see the first line of the solution closely then you would know why my doubt arose. By reading that sentence it feels like if a time series is randam walk then B0, B1 will yeild 0 and the error term will not be serially correlaed.
Replaying to my second doubts explaination, the “original time” seems not to have serial correlation and also the first differenced data also shows there is no auto correlation in the residual. It is just written that the variance of xt increases over time and the mean reverting level is undifined and as per my understanding this means the time series is a trending time series but does that mean the value of the time series is related to the lagged value?
Mein actually sooch raha tha ki long term ROE means ROE beyond 2021. Aur mereko samaj ne mein dikkat hora tha, kyu ki ROE beyond 2021 ko next ROE kyu maan rehe hai and usse kyu calculate karre hai. But abhi samaj aya ki ROE KE SATH LONG TERM SUSTAINABLE GROWTH confuse karre the. Thanks btw.
Mein actually sooch raha tha ki long term ROE means ROE beyond 2021. Aur mereko samaj ne mein dikkat hora tha, kyu ki ROE beyond 2021 ko next ROE kyu maan rehe hai and usse kyu calculate karre hai. But abhi samaj aya ki ROE KE SATH LONG TERM SUSTAINABLE GROWTH confuse karre the. Thanks btw.
Jocelyn Lopez Case Scenario
When i did it with 6 decimal places then got the answer. Thanks for the help!!
When i did it with 6 decimal places then got the answer. Thanks for the help!!
See lessBruno Sousa Case Study
Regarding the reply for your second reason, you are correct but still there is small doubt which is risk neutral probabilities are market concensus probabilities in a risk neutral world. As it is a market concensus estimate cant it change with time are the assumption is to keep it constant.
Regarding the reply for your second reason, you are correct but still there is small doubt which is risk neutral probabilities are market concensus probabilities in a risk neutral world. As it is a market concensus estimate cant it change with time are the assumption is to keep it constant.
See lessTrident Advisory Group
This black model thing got out of my head while solving. Yes black model does take the future prices in the model and also betting is done on FRAs. Thank you.
This black model thing got out of my head while solving. Yes black model does take the future prices in the model and also betting is done on FRAs. Thank you.
See lessMartha Brady Case Study
Thank you.
Thank you.
See lessConnor Wagener Case Study
No, I know this. I wanted to asked how things happen in the long run under mundell fleming model. What is the explaination for long run? Because in the solution they have made us understand by using portfolio balance approach.
No, I know this. I wanted to asked how things happen in the long run under mundell fleming model. What is the explaination for long run? Because in the solution they have made us understand by using portfolio balance approach.
See lessMax Busse Case Study
I agree, but the assumptions behind that the regression model used is an AR model and the time series is a mean reverting one. Agad humlog AR model use karte hai, toh hi humlog ko first differencing karna padega to remove the problem of unit root. Option C mein serf linear regression bolke chod diyaRead more
I agree, but the assumptions behind that the regression model used is an AR model and the time series is a mean reverting one. Agad humlog AR model use karte hai, toh hi humlog ko first differencing karna padega to remove the problem of unit root. Option C mein serf linear regression bolke chod diya hai, they must have assumed regression 1 as the liner regression nehi toh normal liner regression kyu nehi use kar sakte hai? normal linear regression se trend bhi pakad sakte hai, as variance increase over time and mean reverting level is undefined shows ki trending time series hai. What do you think?
See lessMax Busse Case Study
Replying to my first doubts explaination, the thing you told i also agree with the same but if you see the first line of the solution closely then you would know why my doubt arose. By reading that sentence it feels like if a time series is randam walk then B0, B1 will yeild 0 and the error term wilRead more
Replying to my first doubts explaination, the thing you told i also agree with the same but if you see the first line of the solution closely then you would know why my doubt arose. By reading that sentence it feels like if a time series is randam walk then B0, B1 will yeild 0 and the error term will not be serially correlaed.
See lessReplaying to my second doubts explaination, the “original time” seems not to have serial correlation and also the first differenced data also shows there is no auto correlation in the residual. It is just written that the variance of xt increases over time and the mean reverting level is undifined and as per my understanding this means the time series is a trending time series but does that mean the value of the time series is related to the lagged value?
Max Busse Case Study
Please go through my doubts again.
Please go through my doubts again.
See lessJules Bianchi Case Study
Basically that is the positive convexity coming into action. Understood thank you.
Basically that is the positive convexity coming into action. Understood thank you.
See lessBRYAN YEE CASE SCENARIO
Mein actually sooch raha tha ki long term ROE means ROE beyond 2021. Aur mereko samaj ne mein dikkat hora tha, kyu ki ROE beyond 2021 ko next ROE kyu maan rehe hai and usse kyu calculate karre hai. But abhi samaj aya ki ROE KE SATH LONG TERM SUSTAINABLE GROWTH confuse karre the. Thanks btw.
Mein actually sooch raha tha ki long term ROE means ROE beyond 2021. Aur mereko samaj ne mein dikkat hora tha, kyu ki ROE beyond 2021 ko next ROE kyu maan rehe hai and usse kyu calculate karre hai. But abhi samaj aya ki ROE KE SATH LONG TERM SUSTAINABLE GROWTH confuse karre the. Thanks btw.
See less