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Convexity effect
Good morning, Could you please help me understand the effect of convexity based on the shape of the curve? I have been struggling with this concept for a while and I would like to understand some examples. That way I could finally get when the convexity term in the Taylor term approximation...- librosdeholanda
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- Replies: 1
- Forum: P1.T4. Valuation & Risk Models (30%)
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Bias of the variance
Is there anyone who could help me understand why the bias of the variance is sigma squared divided by n instead of the same but as negative (-sigma squared divided by n)? I am talking about the following expression:- librosdeholanda
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- Replies: 1
- Forum: P1.T2. Quantitative Methods (20%)