c?
apcarlso Wrote: ------------------------------------------------------- > i definitely agree that an increase in df will > result in more kurtosis. > Excess kurtosis of a t-distribution is 6/(df - 4) which decreases as df increases > i would also think that as df increases, std and > varience would decrease. think about it, the > denominator in std. deviation is n - 1. an > increase in n would result in a lower quotient. > Variance is df/(df-2) which decreases slowly to 1 > > also, std. dev. is a measure of risk… think > about a portfolio with 2 securities vs. a > portfolio with 2000 securities. the > diversification (increase in n) would lead to > lower risk and lower std. dev. > > does anything i wrote make sense? F quant.
cpk would it bbe incorrect to think like this if std is 5 that means that roughly returns lie within +/- 2 std -with a 95% probability that would mean that returns would lie under 20% with a 97.5% chance -aprox to have that two year consecutively 0.975^2=0.95 ?
^Looks good to me.
Yep the answer is C