Question
To model the market risk of a stock, we base our statistical analysis on historical data on the returns for that stock (ie scaled changes
To model the market risk of a stock, we base our statistical analysis on historical data on the returns for that stock (ie scaled changes in the price given by rt = (Pt - Pt-1)/ Pt-1 ). When conducting market risk analyse for a bond, why is it no longer appropriate to analysis historical changes/returns in the market price for the bond?
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Finance Applications And Theory
Authors: Marcia Millon Cornett, John R. Nofsinger, Troy Adair
3rd International Edition
1259252221, 9781259252228
