im struggeling with the definition of repo vs. reverse repo in the context of:
Study Notes OP risk - Tuckman Ch12 Side 4 in the Notes
=> Is the following from the view of the Investor a reverse repo rather than a repo?
=> Because: For the party selling the security and agreeing to...
why are there two sets of VAR used in the IMA? See below the picture from your Notes.
On page 11 you say it is: 1% 10-day VAR for VAR calculation
On page 13 it is said to use 1% daily VAR for VAR calculation and 1% 10-day VAR for riks charge computation.
For what do we use 1% 10-day...
just a basic question, but i don't get it (a short answer would be enough):
Assuming the 1 year future price is 900 $.
Shorting the future. What is the meaning of the 900 $?
I dont't understand the difference between the "price I will receive at delivery/expiry " and the "quoted...
i have the following question:
1. The joint probability for two independent events is defined as: P(A and B)=P(A)xP(B)
2. Why is not P(High=20%)xP(Increase=40%)=P(Increase and High=10%).
Or should it be and only the example is wrong?
Can anybody explain it please?
I wish all...
just one point regarding the use of the term "excess return" which confuses me:
In the Notes for CAPM_Elton, page 5: Excess return is defined as RsubM minus RsubF (I understand)
In the Notes for APT_Bodie, page 8: Excess return on portfolio is defined as E(RsubA) + BetasubA times F