@David Harper CFA FRM - thanks for the explanation David. It took me a little bit to make sense of this statement "As this tree recombines, it must requires six up jumps (and therefore six down) to reach the $100.00." but I think I got it eventually. I prepared the binomial tree to count the...
@David Harper CFA FRM - David, could you please explain how you arrived at values of k as 6 (prob. of ending at $100) and 9 (prob. of ending at $177.16)in following example noted in the Study notes (Chapter 3: Common Univariate Random Variables, pg.6)?
@David Harper CFA FRM , can you please share an example of the below case if possible?
Events can be conditionally independent yet unconditionally dependent. Events can be conditionally dependent, yet independent! [Chapter 1: Fundamentals of Probability, Study Notes, Pg. 5]
It will be easy to...
David, the hyperlink provided in the workbook (R8-P1-T1-Elton-CAPM-v3) tab "T1-PPC-MVP" -
is not working. Can you please provide a working link?