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    Geometric return (Hull chapter 14)

    2 Formulas are being used to calculate geometric return in Hull chapter 14: 1. geometric return - mu- (sigma^s/2) 2. geometric return = (Price at T/price at t)^(1/(T-t)) For the example on study note page 60, those 2 formulas do not result in the same result. Can someone clarify when to use...
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    Does a BLUE estimator need to be consistent?

    The characteristics of a BLUE estimator are: - Efficient - Linear - Unbiased Does an estimator need to be consistent in order to be BLUE? Another question: study notes page 14 Stock and Watson Chapter 4: - on the top section of the page it states that OLS estimators are only efficient under...
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    Variation margin

    It seems like there is a conflicting meaning of variation margin in the readings. The institute for Financial markets (page 21 in GARP FRM book) seems to indicate that the daily settlement of gains and losses refers to variation margin (so not only in case of a margin call) Hull Chapter 2...
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