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 analysis for a bond, why is it no longer appropriate to analyse historical changes in the bond price?
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Production And Operations Analysis
Authors: Steven Nahmias
6th Edition
0073377856, 9780073377858
