so appraisal method underestimates volatility and underestimates correlation. How is that possible when corr = cov/std dev 1 * std dev2? If you underestimate std deve shouldn’t cov increase as well?
so appraisal method underestimates volatility and underestimates correlation. How is that possible when corr = cov/std dev 1 * std dev2? If you underestimate std deve shouldn’t cov increase as well?