Q1 A hen lays N eggs, where N has the Poisson distribution with parameter . Each
egg hatches with probability p independently of the other eggs. Let K be the number
of chicks. What is the conditional expectation of the initial number N of eggs, given
that we observe k chicks? What is Var(N/K =...
1. Of the assumptions below, the most likely to hold in practice is:
a.Constant interest rates
b.Complete markets
c.Zero transaction costs
d.No default risk
e.Arbitrage-free prices
2. Suppose you are faced with the following interest rates:
r1 = 9%
r2 = 10%
r3 = 11%
Now...
if that topic is a big one, it's pretty normal as there will be lots of concepts and formulas....
I was told there will be MLE estimation related stuff, is it fishy that those stuff contribute a lot to the summary?