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Chapter 6: Measuring Risk—Dynamic Models

Description:

Lecture notes on measuring risk, dynamic models, the random walk model of stock prices, discrete time stochastic process, Monte Carlo simulation, the normal distribution of returns, the log-normal distribution of prices, probability calculations, estimating the parameters, the continuous time representation, the binomial and other tree or lattice representations, complications, from factor risk to project risk, and application of the random walk to other variables.

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Chapter 6: Measuring Risk—Dynamic Models

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Spring 2009
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