Question: Discuss Mr. Viniar's statement. Evaluate the main theories behind use of models based on Gaussian (normal) distribution and assess how they might have undervalued market

Discuss Mr. Viniar's statement. Evaluate the main theories behind use of models based on Gaussian (normal) distribution and assess how they might have undervalued market risks and whether and how these models might have contributed towards the credit crunch.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

These two questions is what I will present, and please read through the case first then answer these two questions. Thank you! 1. Suppose you expected the dollar to appreciate in value by 10% against...

Please help with the discussion below: ** Each of the 3 questions below only need to beabout two-threepara graphs but packed full of information, no fluff. **Attached below are a few readings from...

Your end-of-semester assignment is as follows: (a) (i) read the two Economist articles entitled ?Debt is Good for You? (dated 01/25/2001) and ?Debtors? Prison? (dated 02/09/2009), which discuss the...

Review the consolidated balance sheets and the related disclosures and respond to the following questions. Debt: As of June 30, 2015, what is the dollar amount of the current portion of the long-term...

Answering the following question using this the attached financial statement, which can also be found at https://www.sec.gov/Archives/edgar/data/80424/000008042415000070/fy141510-kreport.htm For each...

Hello! I need a brief summary (including the big ideas or major points of the article) along with some synthesis of the ideas and some of your own thoughts for the article that is attached. Length of...

Question 1 The Jumbo Group restaurant chain launched its initial public offering (IPO) in October 2015. As a financial analyst of Tiger Investment Fund, your boss has requested for you to brief her...

Southwest Appliances Inc. WP B.2.1 Inherent Risk and Materiality Memo Initials Date Prepared Reviewed Preliminary Inherent Risk Assessment Management policy of maintaining large inventory to meet...

Hi there I need help answering ASSIGNMENT 1 ONLY by Friday afternoon. I have attached the study pack to help answer the question. Thanks! FIN4802 ASSIGNMENTS ASSIGNMENT 01 Due date: 13 May 2016...

Read the Southwest ApplianceInherent Risk andControlDesign I uploadedthat describesTask 3 beginning on page 20. You will also need to refer back to the case description to perform the assigned task....

On October 1, the accounts receivable account balance was $115,800. During October, $449,600 was collected from customers on account. Assuming that the October 31 balance was $130,770, determine the...

A company believes that its demand for the next six months is as follows: The output per worker per month is 40 units. The per worker hiring and lay off costs are $2000 and $3000, respectively. There...

Federal Agency responsible for setting accounting standards for Federal Accounting Reporting is: Question 4 8 options: Non of the above The Government Accountability Office The office of Management...

Assets Amount (USD) Liabilities and Equity Amount (USD) Cash $300,000 Accounts Payable $120,000 Accounts Receivable $220,000 Notes Payable $130,000 Inventory $240,000 Long-term Debt $350,000 Property...