the formula for Weighted Mean= sum of WX/ sum of W. So it should be 1900/0.32 but they have divided by sum of X= 20000. Can someone explain why.
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I simply wanted to ask that when there are sums on “returns” asking to calculate Standard deviation or Mean Absolute Deviation, should we take the Arithmetic or Geometric mean to calculate the same? Please can you help me with the ...
Key point this reading
A call option on a stock index is valued using a three-step binomial tree with an up move that equals 1.05 and a down move that equals 0.95. The current level of the index is $190, and the option exercise ...
A stock is priced at $100.00 and follows a one-period binomial process with an up move that equals 1.05 and a down move that equals 0.97. If 1 million Bernoulli trials are conducted and the average terminal stock price is ...
ans is B please explain.
Why are we taking cube root?
Q. A Monte Carlo simulation can be used to: directly provide precise valuations of call options. simulate a process from historical records of returns. test the sensitivity of a model to changes in assumptions—for example, on distributions of key variables. Ans is option C Option B ...
Q. A portfolio manager annually outperforms her benchmark 60% of the time. Assuming independent annual trials, what is the probability that she will outperform her benchmark four or more times over the next five years? 0.26 0.34 0.48 ans is 0.34 If question would have asked ...