Topic: Quantitative Finance

FAQs on Quantitative Finance

FAQs on Quantitative Finance

Getting agreement between finance theory and finance practice is important like never before. In the last decade the derivatives business has grown to a staggering size, such that the outstanding notional of all contracts is now many multiples of the underlying world...

Hot Jobs: Five Careers in Quantitative Analysis

Quantitative analysis is the process of analyzing financial data with the goal being to form risk models and financial strategies based on mathematical formulas. These types of jobs require a high degree of skill and strong mathematical skills. For some positions, you...

Arithmetic Vs. Geometric Stock Returns

This video provides clarity about the confusion over the stock returns. The expected return of a stock is ambiguous because, if we assume returns are normal, then price levels are lognormal. In which case, the mean does not equal the median future stock price....

How to Scale Autocorrelated Returns?

We know that the square root rule can be used to scale volatility with time. This rule assumes that the returns are independent and identically distributed. However, this assumption is not very realistic. This video illustrates a scaling factor that adjusts the square...

What is the Square Root Rule?

Volatility and VaR can be scaled using the square root of time rule. According to this rule, if the fluctuations in a stochastic process are independent of each other, then the volatility will increase by square root of time. It provides exact volatilities if the...

What is Volatility?

The simple answer is the standard deviation of periodic returns. This video takes some sample data for closing prices of a stock and demonstrates how volatility is calculated in Excel. In finance, such as for price series, usually log returns are used, where log is...

Page 1 of 212