Mathematical Principles and Quantitative Finance · 07. février 2024
Explore the hypercube's critical role in CDO risk modeling within quantitative finance. A hypercube extends a 2D square or 3D cube into an N-dimensional space, each axis representing a financial asset's cumulative distribution in copula functions. It's pivotal for visualizing complex dependencies in a CDO, where each axis indicates the default probability of different assets.
Statistics · 01. juillet 2023
Discover the **Moment Generating Function (MGF)**, a tool to analyze random variable distributions. Learn how \( M_X(t) = \mathbb{E}[e^{tX}] \) reveals moments like mean and variance, supporting financial modeling, stock analysis, and risk management. Explore its practical uses in finance today!