Introduction to Probability Theory

... Chapter 1 Introduction to Probability Theory 1.1 The Binomial Asset Pricing Model The binomial asset pricing model provides a powerful tool to understand arbitrage pricing theory and probability theory. ... removed in the Cantor set construction of Example 3.2.  CHAPTER 1. Introduction to Probability Theory 35 In addition to tossing a coin, another common random expe...

Ngày tải lên: 18/10/2013, 03:20

... F 1 ⊗F 2 , 1 × 2 ) is called product probability space. An introduction to probability theory Christel Geiss and Stefan Geiss February 19, 2004 20 CHAPTER 1. PROBABILITY SPACES One can prove that (F 1 ⊗ ... A n 2 )  := n  k=1 1 (A k 1 ) 2 (A k 2 ). Definition 1.2.15 [product of probability spaces] The extension of µ to F 1 ×F 2 according to Proposition 1.2.14 is called prod...

Ngày tải lên: 31/03/2014, 16:23

Ngày tải lên: 17/12/2013, 15:19

... Introduction to Financial Econometrics Chapter 4 Introduction to Portfolio Theory Eric Zivot Department of Economics University of Washington January 26, 2000 This version: ... simple way to solve this problem is to substitute the restriction (7) into the function (6) and reduce the problem to a minimization over one variable. To illustrate, use the restriction (7) to solv...

Ngày tải lên: 17/12/2013, 15:21

... corresponds to exactly one of the outcomes of the random variable ¯ X, so it is natural to assign probability 1/8 to each of these. We assign probability 0 to the other 16 outcomes. In each case, the probability ... up heads with probability p, and tails with probability q. Now suppose that this coin is tossed twice. Using a frequency interpretation of probability, it is re...

Ngày tải lên: 20/12/2013, 19:15

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