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This question was mentioned in chapter 14 of “volatility” of GARP Quants book 2019 edition. Ok so as far as what I understood , you are trying to tell that in the example mentioned we are talking only about a single outcome of a random variable and we are not calculating the population mean (...

There was an example in GARP stating "Suppose that an asset price is $60 and that its daily volatility is 2%. This means that a one-standard devaition move in the asset price over one day would be 60*0.02 or 1.20%. If we assume taht the change in the asset price is normally distributed we can be...

Hi David, in your answer to @Alicante82 ,you quoted Diebold's Chapter 5 and there was a statement that "The last-included power of time could always wind up with an estimated coefficient of zero." According to my interpretation it simply tells us that the coefficient can't take any value and...

Thank you so much David !

Alright! Thanks

Hey david! I had a doubt while reading the chapter "regression with a single regressor" from Schweser. There was a statement that the variance of the slope(beta) decreases with the variance of the explanatory variable. The explanation given was higher variance of the explanatory (X) variable...

Thank you so much David! I have clearly understood the difference between the two scenarios.

Hi David, I had a doubt in this question. When calculating the joint probability of a manager who is an outperformer and beats the market once , we know that the joint probability is 20%*75% = 0.15. But when we are asked to calculate the probability of a manager who is an outperformer and beats...