Could you please help me understand the effect of convexity based on the shape of the curve? I have been struggling with this concept for a while and I would like to understand some examples. That way I could finally get when the convexity term in the Taylor term approximation...
Is there anyone who could help me understand why the bias of the variance is sigma squared divided by n instead of the same but as negative (-sigma squared divided by n)?
I am talking about the following expression: