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What shape would the probability distribution have for completely certain returns?
Wiki User
∙ 16y ago
a straight, vertical line, i.e., zero variability
Wiki User
∙ 16y ago
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What shape would the probability distribution have for completely uncertain returns?
the variance is infinitely large and in the extreme case the probability distribution curve will simply be a horizontal line
What is downside probability?
This is a very simple statistic to comprehend and to calculate. It takes the frequency distribution method of calculating probability. The statistic is calculated as This statistic is simple to interpret as well. What it calculates is the probability of the portfolio to get a negative return. It can be comprehended that a higher figure would mean a higher probability of fund to do give negative returns.
Business application of probability?
Probability (and probability based models) are used in business scenarios to make decisions under uncertainty. A good example is maintaining safety stocks of inventory when there is a probability that the demand for product might be higher than the supply. Another application is in financial markets where the returns are not certain so people use probabilities to predict outcomes and hedge against uncertainties.
What refund amount represents the thirty-fifth percentile of tax returns when given an average income of 3036 and a standard deviation of 950?
Assuming a normal distribution of incomes: 2672z = ( 2672 - 3036 ) / 950 = -0.383157895Pr{z
What is the historical volatility of a stock?
The historical volatility of a stock is the variation of the returns over a period of time (say, over the last twelve months). The variation of the returns is usually taken as the standard deviation of the returns. You need a spreadsheet to calculate historical volatility (see the related link for an example)
What shape would the probability distribution have for completely uncertain returns?
the variance is infinitely large and in the extreme case the probability distribution curve will simply be a horizontal line
What is downside probability?
This is a very simple statistic to comprehend and to calculate. It takes the frequency distribution method of calculating probability. The statistic is calculated as This statistic is simple to interpret as well. What it calculates is the probability of the portfolio to get a negative return. It can be comprehended that a higher figure would mean a higher probability of fund to do give negative returns.
Business application of probability?
Probability (and probability based models) are used in business scenarios to make decisions under uncertainty. A good example is maintaining safety stocks of inventory when there is a probability that the demand for product might be higher than the supply. Another application is in financial markets where the returns are not certain so people use probabilities to predict outcomes and hedge against uncertainties.
How do you calculate the Omega Ratio in Excel?
The Omega Ratio is the probability-weighted gains divided by the probability-weighted losses after a threshold. You need to calculate the first-order lower partial moments of the returns data. This sounds difficult but it's very easy. A spreadsheet to implement this formula can be found at the related link below If the cell range "returns" contain the investment returns, and the cell "threshold" contains the threshold return, then the Omega Ratio is ={sum(if(returns > threshold, returns - threshold,"")) / -sum(if(returns < threshold, returns - threshold, ""))} where the {} represent a matrix formula
What is the prognosis for a patient with nitrogen narcosis?
When a diver returns to a safe depth, the effects of nitrogen narcosis disappear completely. Some evidence exists that certain divers may become partially acclimated to the effects of nitrogen narcosis with frequency.
When an average rate of return of 16.7 percent and a standard deviation of 43.1 percent What is the approximate probability that this stock will yield more than 60 percent in any given year?
Assuming the returns are nomally distributed, the probability is 0.1575.
Is it too late to file 2008 tax returns?
No it is never too late file any of your past years income tax returns that have NOT been filed completely and correctly.
What type of investments offer high returns at the moment?
The types of investments that offer high returns change regularly. Some investments that can offer high returns include stocks and shares as well as property in certain cities.
A IRS auditor randomly selects 3 tax returns from 45 of which 15 contains errors What is the probability that she selects none of those containing errors?
.2861
Is there going to be a third series of Tracy Beaker returns?
I think so, although i am not 100% certain
What evaluates a specified data set and returns certain fields from that days set as instructed?
query
How is variance used to measure risk?
In finance, risk of investments may be measured by calculating the variance and standard deviation of the distribution of returns on those investments. Variance measures how far in either direction the amount of the returns may deviate from the mean.
