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In the context of recovering the term structure using indirect methods the term parsimonious means options: It is less expensive and therefore preferred by some
In the context of recovering the term structure using indirect methods the term "parsimonious" means
options:
It is less expensive and therefore preferred by some traders on a tight budget | |
It does not involve many parameters and therefore induces robustness and stability | |
Is is very precise and flexible because it has many parameters | |
The model parses the data and produces an accurate description of the term structure |
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