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Hi I'm confused with fat tails in a return distribution & conditional and unconditional distribution 1. p 9. "but fat tails could be explained by a conditional distribution" →i thought conditional distribution is normal so it could be explained , is it right? 2. p.9 "time variations in...

ch10. stationary time series p.21 Invertibility: If the inverses of all roots of (L) are inside the unit circle,~~ 1. what is roots?? 2. i don't understand exactly what "invertibility/invertible" mean. please explain in detail

p.8 "In the case when the buyer collateralizes all the underlying instruments, then there is no risk of default. In this case, the bank's floating payment would equate to the bank's funding cost. If the buyer uses leverage, then the floating payment is the funding cost and a spread. This...