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Assessing Foreign Exchange Risk International Finance

Assessing Foreign Exchange Risk International Finance

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Assessing Foreign Exchange Risk International Finance
Assessing Foreign Exchange Risk International Finance

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Categories:Types, Business/Law
Published by: Balaji.S (ACA) Srirangam on Jul 08, 2010
Copyright:Attribution Non-commercial

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12/10/2012

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Assessing Foreign Exchange Risk
FIN 40500:International Finance
 
 
 
 
{ } { }
5.Pr Pr 
==
Tails Heads
There is a “true” probability distributionthat governs the outcome of a coin toss
Suppose that we were to flip a coin over and over againand after each flip, we calculate the percentage of heads& tails
 FlipsTotal  Headsof  
 #
5.
That is, if we collect “enough” data, we can eventually learn thetruth!(Sample Statistic)(True Probability)

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