<t>Well i have this statement:"You have a car worth $20,000 and have a constant relative risk aversion. As your wealth decreases you would be willing to pay a higher insurance premium to fully insure your car."The statement is true?or false??I know that RRA means that the individual will be willing ...

thank you very much all of you

Could you please explain to me in a more analytical way why the second statement isn't an arbitrage?Thank you

<t>1st statement: If i borrow money from a bank for 1 year at 5% and then invest in a risk-free asset that has an expected return of 6% over the same year then this is an arbitrage opportunity?????2nd statement:The risk-free rate is 1.5%. There exists a pharmaceutical share that has current price of...

thank you very much for your help i think that i have got it now!!!

hello in your previous post you havent said no autocorrelation, thats the reason i was confused. Thanks anyway for your help.Could anyone else help here?trekstor

<t>"When performing a variance ratio test on stock index prices, a variance ratio significantly >1 indicates that stock index prices follow a random walk" True or False?Variance-Ratio test is a measure of the randomness of a return series. Variance ratio is computed by dividing the variance of retur...

hello,If auto-correlation means that dailly returns are independent then the statement is "False" since it says that there is NO auto-correlation between daily returns so they couldnt be IID...Correct?

<t>hello trarckstar and thank you very much for you helpthis is a part from Quantitative Finance module that i have in my bachelor degree. I think its a really hard module and sometimes i couldn't keep up with it.So if i have understood correctly what you have said to me! The statement could be true...

<t>Hello, as you can tell I'm a newbie here but i would appreciate your help!!!(really need it)Well i have this statement "There is no autocorrelation between daily returns, thusss daily returns are independent and identically distributed.(i.i.d)" True or False????I'm really confused.... no autocorr...