Explain why it is sometimes necessary to work in both the real world and the riskneutral world

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Explain why it is sometimes necessary to work in both the real world and the risk‐neutral world when carrying out a scenario analysis to determine a confidence interval for the value of a portfolio in one year.

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Risk Management And Financial Institutions

ISBN: 9781119932482

6th Edition

Authors: John C Hull

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Question Posted: Mar 03, 2024 03:00 AM

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Explain why it is sometimes necessary to work in both the real world and the riskneutral world

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The real world is used to simulate possibl...View the full answer

Risk Management And Financial Institutions

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