Recent content by fofx

Special thanks to Joey25 and scose-no-doubt.

Ty. I did this as follows: // Product of difference (-14.2)*(-13.75) = 195.25 (-11.2)*(-13.25) = 148.4 (-10.2)*(-12.75) = 130.05 (-9.2)*(-1.75) = 16.1 (-6.2)*(28.25) = -175.15 (89.8)*(33.25) = 2985.85 // Apply probability 195.25*0.1 = 19.52500 148.4*0.2 = 29.68 130.05*0.25 = 32.5125 16.1*0.2...

Can anyone spot where I'm going wrong here? The only slightly confusing (but not incorrect) thing I have done, is when calculating Expected Return I convert 4% to 0.04. However when calculating Variance and Standard Deviation, I keep it as 4% to stop the numbers from getting too small...

I must be doing something wrong with the data I have because I'm not getting a number between -1 and 1 for correlation.

So you calculate your expected return by: probability * return, and then sum them For X 0.5*1 = 0.5 0.5*3 = 1.5 0.5+1.5 = 2. Therefore expected return for X is 2 For Y 0.5*4 = 2 0.5*2 = 1 2+1 = 3. Therefore expected return for Y is 3 The you find the product of the difference from expected...

When you write " covariance(A, B)" do you mean the product of the two variance values?

This is exactly the problem! And although you're right the dimension doesn't affect the calculation, it does mean I end up with 300 or 0.3 depending on whether I treated the return as a percentage or monetary value. When I go onto calculate co-variance and then coefficient correlation, I end up...

I am calculating Expected Return in order to calculate Variance and Standard Deviation. scose-no-doubt - the first time you wrote "Suppose it depends on whether you're looking for expected return or expected value. EV will be monetary." I know EV is monetary and ER is percentage, however what...

I'm probably not being clear. There is: 1. Return 2. Probability 3. Expected Return. Summing the (Return * Probability) for each scenario gives the Expected Return. Is 'Return' a percentage or amount? I know Expected Return is a percentage, my question is about 'Return'.

I'm calculating Expected Return. However the column titled "return" for a specific scenario doesn't state whether it's a percentage or currency amount.

Hello, I'm going through some notes on measuring risk for an investment. I have two values for each scenario in the investment: Return and Probability. I know the product of these two values is the expected return for that scenario...and then adding them altogether to gives the Expected Return...

Ah, ok. Thanks for the clear explanation. I suppose this is also why the buy / sell prices don't correspond to the actual share price reported on other sites? I mean, it is approximately the same, but sometimes the actual share price is above the buy (i.e. not even within the spread being...

Ah, ok. Thank you for the clear explanation :)

I was looking at the spread for the FTSE 100 on the IG Index website. At 4:30pm the LSE closes, however you can still open a bet on the FTSE and the spread was still changing. Why is this so when the LSE has closed?

Not definitely to trade futures, but more to compare specific tech companies against a suitable tech index rather than the usual indexes.