Stochastic volatility is the unpredictable nature of asset price volatility over time. It's a flexible alternative to the Black Scholes' constant volatility assumption.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Somer G. Anderson is CPA, doctor of ...

The total area under the curve must equal 1, representing the fact that the probability of some outcome occurring within the entire range is certain. \[\int_{-\infty}^{\infty}f\left(x\right)dx=1\] ...

This is a preview. Log in through your library . Publisher Information The purpose of the Institute of Mathematical Statistics (IMS) is to foster the development and dissemination of the theory and ...

Discrete random variables take only specific, countable values. Stock prices are examples of discrete random variables due to tick sizes. Continuous random variables, like stock returns, can take any ...

Though most smartphones come preloaded with some sort of GPS navigational app like Google Maps, it's not necessarily going to be the best option available. Third parties have been working on ...

Although research indicates affect variability—the extent to which an individual’s emotions fluctuate—is associated with behavioral outcomes related to adjustment and adaptability, it is unclear to ...

Abstract: In this paper, a discrete-time version of the multi-period mean-variance portfolio selection problem in which the market parameters are subjected to a random regime switching is investigated ...

B.F. Skinner was a renowned American psychologist and behaviorist. He made great contributions to the fields of psychology and sociology and one of his most helpful theories was that of operant ...