R67-P2-T7-Hull, p18 (Study Notes)
Technically we shouldn't take the average of the gross income since only positive gross income are taken into account. If the gross income is negative in year 1 for example, we will only average the two other years.
Reference: Hull (Risk Management and Financial Institutions)
"Years where gross income is negative are not included in the calculations"
Technically we shouldn't take the average of the gross income since only positive gross income are taken into account. If the gross income is negative in year 1 for example, we will only average the two other years.
Reference: Hull (Risk Management and Financial Institutions)
"Years where gross income is negative are not included in the calculations"
