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  1. S

    volatility

    This question was mentioned in chapter 14 of “volatility” of GARP Quants book 2019 edition. Ok so as far as what I understood , you are trying to tell that in the example mentioned we are talking only about a single outcome of a random variable and we are not calculating the population mean (...
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    volatility

    There was an example in GARP stating "Suppose that an asset price is $60 and that its daily volatility is 2%. This means that a one-standard devaition move in the asset price over one day would be 60*0.02 or 1.20%. If we assume taht the change in the asset price is normally distributed we can be...
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    FRM 1 QA forecasting

    Hi David, in your answer to @Alicante82 ,you quoted Diebold's Chapter 5 and there was a statement that "The last-included power of time could always wind up with an estimated coefficient of zero." According to my interpretation it simply tells us that the coefficient can't take any value and...
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    Regression with one regressor

    Thank you so much David !
  5. S

    Regression with one regressor

    Hey david! I had a doubt while reading the chapter "regression with a single regressor" from Schweser. There was a statement that the variance of the slope(beta) decreases with the variance of the explanatory variable. The explanation given was higher variance of the explanatory (X) variable...
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    Bayesian Decision Tree Question

    Thank you so much David! I have clearly understood the difference between the two scenarios.
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    Bayesian Decision Tree Question

    Hi David, I had a doubt in this question. When calculating the joint probability of a manager who is an outperformer and beats the market once , we know that the joint probability is 20%*75% = 0.15. But when we are asked to calculate the probability of a manager who is an outperformer and beats...
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