The Mathematics of Value-at-Risk

The percentage loss predicted by the duration-with-convexity rule is: Predicted % loss = [( –11.81) ( 0.01] + [0.5 ( 150.3 ( (0.01)2] ... The DDM is biased toward finding low PIE ratio stocks with high dividend yields to be undervalued and conversely, high PIE ratio stocks with low dividend yields to be overvalued. ... The formula for ... ................
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