Question
A stock has an annual return of 12 percent and a standard deviation of 56 percent. Assuming returns are normally distributed, what is the smallest
A stock has an annual return of 12 percent and a standard deviation of 56 percent. Assuming returns are normally distributed, what is the smallest expected loss over the next year with a probability of 1 percent? Does this number make sense? Why or why not?
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
