There are two (2) parts to this question.
Part 1 [5 Points]
Take a look at the two charts below. In
both cases you can see daily relative price changes of stocks over more than 30 years. However, one is real while the other one is fake. Can you identify which chart is real and which one is fake? The fake one is generated with a classical finance model. Provide explanations for your choice relying on cues such as: how uniformly prices vary, the size of price changes within a range, extreme fluctuations, outliers or erratic price swings, and clusters.
Part 2 [5 Points]
Discuss how classical finance has been influenced by physics and why some recent scholars suggest viewing the financial market as a biological entity.
Please label each answer clearly in your response below.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more