QuoteOriginally posted by: phil451whereas an MSc in Finance is all about accounting - Balance sheets (on/off), Cash Flows and Income statements. There is probably some cross over but not much.Are you sure? If this is the case, why don't we call it MSc in Accounting?

<r>Has anyone of you here implemented the solution method proposed by the following paper (by C.Rogers) ?<URL url="http://www.statslab.cam.ac.uk/~chris/papers/psoc150806.pdfI"><LINK_TEXT text="http://www.statslab.cam.ac.uk/~chris/pa ... 50806.pdfI">http://www.statslab.cam.ac.uk/~chris/papers/psoc150...

as long as the management does not own 100% of the firm, there might be free cash flow problem (cf. Jensen 86).

QuoteOriginally posted by: Vik100I am new to the forum. Would anyone mind letting me know where I can find the guide?For a copy of Paul & Dominic's Guide to Quant Careers, send your CV toDominic@PaulDominic.com

<t>QuoteOriginally posted by: misiti3780ok, i get what you are saying.so the expectation is zero becuase W(t) is continuous, and when you turn the integral into a summation, and let the the number of partitions (n) go to infinity,the max [W(t_j+1) - W(t_j)] for 0 < k < n-1 goes to zero, making the e...

what is your question, then?

<t>see the comments below. QuoteOriginally posted by: CrashedMintI don't understand some parts of example 5.7 on pages 70~71 of Björk's book. I guess this stuff is very very basic. So here it goes:Giveni get.%%%% that is right %%%%%%%Then Björk saysWhy is that?%%%% i do not see the point, either. %%...

i am looking for the following paper:Kusuoka, S 1999. A remark on default risk models. Advances in Mathematical Economics 1, 69-82thanks in anticipation,mjy

yes, you can say so. the following might also be helpful. http://mathworld.wolfram.com/TelescopingSum.html

<t>what i wrote is the following:SUM(var(Wtj-Wtj-1)^2) = SUM(E[(Wtj-Wtj-1)^4] - E[(Wtj-Wtj-1)^2]^2) <= SUM(E[(Wtj-Wtj-1)^4]) = 3 SUM (tj-tj-1)^2 <= 3*max_j (tj-tj-1) * SUM (ti-ti-1) --> 0.the first equality follows from the definition of the variance. then the weak inequality (<=) follows from the f...

<t>Zerdr0n, thanks a lot for pointing that out. yes, the sum converges in probability, which is a weaker convergence concept than almost sure convergence. ** added on May 7th 2008 **if the sum converges in probability, then one might find a subsequence of the original sequence of Riemannian subdivis...

<t>here come my two cents to deal with variance.following magnolija's notation, we need to compute var(SUM (Wtj-Wtj-1)^2) = SUM(var(Wtj-Wtj-1)^2) (because of the independent increments) <= SUM 3*(tj-tj-1)^2 (because V(x^2) = E(x^4) - (E(x^2))^2 <= E(x^4) = 3*sigma^4, for x \sim Normal(0, sigma)) <= ...

Black-Scholes formula uses numerical integration, as well.

<t>QuoteOriginally posted by: AlekkHi all, for my study I am doing a project where I have to study the convergence rate of a Euler scheme for a SDE driven by a levy process. This a very simple one, namely:dS/S = dZwhere Z is a Levy process of infinite activity. I have to do that for different Levy m...

i just download the paper from jstor. it seems very sexy. thanks a lot.