1. Chapter 9 Capital Market Theory 2. Explain capital market theory and the Capital Asset Pricing Model (CAPM). Discuss the importance and composition of the market portfolio.…
Chapter 11 Risk and Rates of Return Defining and Measuring Risk Risk is the chance that an unexpected outcome will occur A probability distribution is a listing of all possible…
Nicolas Privault Notes on Stochastic Finance This version: April 24, 2013 http://www.ntu.edu.sg/home/nprivault/indext.html http://www.ntu.edu.sg/home/nprivault/indext.html…
Nicolas Privault Notes on Stochastic Finance This version: April 25, 2013 http://www.ntu.edu.sg/home/nprivault/indext.html Notes on Stochastic Finance Preface This text is…