Z
zusammen
Member
I've been doing the PBOR for Chapter 3. In some questions (Question 3, part (iv): Risk-averse and risk-seeking, for example) we are asked to, say, 'calculate the probability of each asset yielding a return within each increment'. However, the answer multiplies the increment with the probability mass function. I don't understand why this must be done.
Thanks and best regards,
Thanks and best regards,