# finance

1. ### Mininum Variance Portfolio of Two Risky Assets

So I have a question: I need to derive an expression for the share of wealth allocated to Asset 1 in a portfolio that has the minimum possible variance. The following is known: Two risky assets: 1 and 2 Returns: r1 and r2 Variance: σ12 and σ22 Covariance: σ12...

5. ### Value Betting and the Kelly Criterion

Hi all, Just found this forum online and it seems like a great resource. I just need a little help with a new betting system I am putting together and would really appreciate if anyone could oblige. I am currently designing a system that combines value bets from a number of private, paid and...
6. ### Prices chosen in an isolated optimization of contribution margin!?

The question is: A bartender sells Whiskey(W) and Beer(B). He assumes the following price-demand functions, where X represents one liter of each beverage and P represents the price of the beverage: X(w) = 15,000 - 1000(Pw) + 100(Pb) X(b) = 9,000 - 500(Pb) + 50(Pw) Variable cost of 1 liter of...
7. ### DIFFUSION MODELS - good literature

Hej, can someone recommend me any books related to the use of diffusion models in finance (bass model in particular) ? I'm begging for some help.

16. ### Probability and statistics for finance

Hey! I've got question. Is anyone able to solve/explain to me these two questions? I have an exam in following week, and I have noone else to ask. Enclosed files are from last exam and I feel that this time questions will be similar. Thanks in advance!
17. ### Farkas Lemma and its importance in the context of arbitrage theory (Finance)

Good morning everybody, I have an oral exam soon and the question "Explain Farkas Lemma and its importance in the context of arbitrage theory" is a probable question which will come up... As I missed that lecture, and the notes are not self-explanatory....does somebody have a suggestion what...
18. ### mathematics in finance

The question in my book is so vague I don't understand it ??? I don't even know what formula to us for this is have a list of formulas too. How long will it take money to double if it is invested at 7.5% compounded daily? 7.5% compounded annually?
19. ### Auto Finance Formulas

Hello, I am trying determine the mathematical formulas used in an online auto loan calculator. The loan calculator is located here, and has 4 different tabs with different calculations: http://www.cars.com/go/advice/financing ... anCalc.jsp - "Auto Loan Calculator" - "Affordability" -...
20. ### Macauley's duration formula, proof and dedution needed-Finance economics

I am searching for deduction step by step of Macauly's duartion formula, or its special form that looks like this: D= {(1+Y)/Y - [1+Y+T(c-Y)]/[(c(1+Y)^T-1))+Y]} where : D-duration Y-yield to maturity rate c-coupon rate T-elapsed time to yield to maturity I need this formula explained step by...