Market Price of Risk: All You Need to Know
The Whispering Void What is Market Price of Risk? The market price of risk refers to the desired return over the risk-free rate as compensation for taking on risk. A Short Example Historically…
Monte Carlo Simulation: All You Need To Know
What is Monte Carlo Simulation? Monte Carlo Simulation is a method of solving probabilistic problems that involves numerically ‘seeing’ many alternative scenarios or games in order to quantify statistical attributes…
Value At Risk in Finance: All You Need To Know
What is Value At Risk Value at Risk (VaR) measures the potential loss from a position, portfolio, desk, or bank. VaR refers to the greatest loss an investment can incur…