What is Linear Regression?
Linear regression is one type of regression that assumes a linear relationship between a variable (X) and a dependent...
What are Options?
In options trading, the buyer is given the right but not the obligation to buy (sell) an asset against the pre-specif...
Spot Rates
What is Spot Rates? When a lump sum of money is received only once in the future, the spot rate is the interest rate ...
Best Linear Unbiased Estimator
If the variables are normally distributed, OLS is the best linear unbiased estimator under certain assumptions.
Risk Mapping
Risk mapping visualise specific risks a company faces. It assists companies in identifying and prioritising their bus...
Understanding the Total Sum of Squares in Finance
The coefficient of determination measures how well a regression line explains the relationship between a dependent va...
Delving into the Capital Market Line in Finance
Capital Market Line was developed in the 1960s. It is a graphical representation of all portfolios that combine risk ...
What is Normal Distribution in Financial Markets
The normal distribution is a continuous probability distribution that is symmetrical around its mean. In risk managem...
What is Correlation?
Correlation measures the strength of the linear relationship between two variables and is always between -1 & 1