I'll be blunt, i'm coming here for advice as i'm not really sure what do to anymore.
A little bit of story and background first.
I'm 25 and I graduated back in April of 2013. My bachelor was in business administration but I prefer to say finance as that was my major. I'm not...
I need some help on understanding why perfect correlation makes a part of the equation for portfolio VaR disappear. I've tried the calculations and the answers come out the same but I don't understand why.
How do we get from: VaRp = sqrt(VaR1^2+VaR2^2+2VaR1VaR2)
I've been studying for about a month now and I am currently on the quantitative analysis part of the curriculum.
I came across some calculus while reading your note but never really paid attention to it as it seems to be shown as a bonus rather than being mandatory. There seems to...