<t>Thanks Amit - Would it be appropriate to use just the prices and not long returns if the aim is to find covariances between various time lags of the same parameter? So the aim is to estimate covariances between prices at t and price at t-1, and covariance between price at t with price at t-3 and ...

I like your point about WSJ market cap. Thanks for the insight as well on FB. Thanks again.

<t>Apols if this question has already been answered but my search couldn't find from archives. Given the percentage change in daily prices for N stocks for 250 trading days in a year, how do I construct the covariance matrix for those percentage price changes among those symbols? I am rummaging the ...

<t>Can anyone shed light on what is stopping Facebook from capitalizing on its mobile app that millions (presumably) of users (including myself) use? What is preventing the firm from monetizing its mobile appearance? That single challenge is being cited by analysts as the cause for the company's IPO...

How do you derive the following formula from basics?Covariance (X,Y) = E[XY] - (UX * UY)WhereUX represents mean of XUY represents mean of Y

Given a coin is flipped 100 times and it shows heads 100 times, what is the likelihood that the coin is fair?

Thank you acastaldo and Traden4Alpha. My confusion arose because I had incorrectly assumed that A and B were independent and were the result of rolling two separate fair dice. In fact, they are the outcome from rolling a single die and are not independent. Thanks for clarifying!

<t>Can anyone explain below results (i.e. 1/6, 2/6, 2/6 and 1/6 respectively).Consider the roll of a die and let A=1 if the number is even (i.e.; 2,4, or 6) and A=0 otherwise. Furthermore, let B=1 if the number is prime (i.e.; 2, 3 or 5) and B=0 otherwise. Then, the joint distribution of A and B is:...

Thanks acastaldo - I know there is never a single biblical book on any subject, and the trick is to refer to many books & papers, but do you have any all-time favorite applied math books that you can recommend?

For a newbie (or even an experienced) quant, would Pure mathematics be more relevant and useful, or would Applied mathematics be the one?

Please excuse this basic question, but what is load_vector in C++?

Daveangel - That was awesome! Thank you Sir.

Thanks acastaldo. Won't ask you the proof for Pt+1 = exp(r)*Pt, unless you have that covered too ...

<t>Do regret the inconvenience of this very basic question, but can anyone either prove or point me to a link on the web that shows how the continuously compounded returns of a financial asset over the period t to t+1 is the natural logarithm of Pt+1/Pt, where Pt and Pt+1 are prices at the start and...

Thank You Edgey - Very clear that helps!