vectors

Hello, Regarding Jorion's Chapter 11 on VaR Mapping, I was wondering where the use of the word 'vector' came from? Page 21 of the study notes, at the bottom of the page: Are vectors used to represent the PnL of instruments weighted by their mapped Risk Factor? (such as length of the vector...

In R a matrix is an atomic vector with the dimension attribute. In this example, the correlation matrix is entered as a vector with sixteen elements: rho_v ＜-c(1.000, ...). Then the vector is translated into a matrix with rho ＜- matrix(rho_v, nrow = 4, ncol =4). Now it is a matrix because it has...

Factors are categorical vectors. Specifically, they are (integer) vectors that store categorical values, or ordinal values. Ordinal values are *ranked* categories (but they are not intervals). Factors can only contain predefined values. A classic example of a factor are male/female. An example...