Introduction to Probability Theory

... Chapter 1 Introduction to Probability Theory 1.1 The Binomial Asset Pricing Model The binomial asset pricing model provides a powerful tool to understand arbitrage pricing theory and probability theory. ... removed in the Cantor set construction of Example 3.2.  CHAPTER 1. Introduction to Probability Theory 35 In addition to tossing a coin, another common random expe...

Ngày tải lên: 18/10/2013, 03:20

... F 1 ⊗F 2 , 1 × 2 ) is called product probability space. An introduction to probability theory Christel Geiss and Stefan Geiss February 19, 2004 20 CHAPTER 1. PROBABILITY SPACES One can prove that (F 1 ⊗ ... A n 2 )  := n  k=1 1 (A k 1 ) 2 (A k 2 ). Definition 1.2.15 [product of probability spaces] The extension of µ to F 1 ×F 2 according to Proposition 1.2.14 is called prod...

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Ngày tải lên: 17/12/2013, 15:19

... Introduction to Financial Econometrics Chapter 4 Introduction to Portfolio Theory Eric Zivot Department of Economics University of Washington January 26, 2000 This version: ... simple way to solve this problem is to substitute the restriction (7) into the function (6) and reduce the problem to a minimization over one variable. To illustrate, use the restriction (7) to solv...

Ngày tải lên: 17/12/2013, 15:21

... corresponds to exactly one of the outcomes of the random variable ¯ X, so it is natural to assign probability 1/8 to each of these. We assign probability 0 to the other 16 outcomes. In each case, the probability ... up heads with probability p, and tails with probability q. Now suppose that this coin is tossed twice. Using a frequency interpretation of probability, it is re...

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Ngày tải lên: 01/01/2014, 17:43

... particles, such as photons and protons. It turns out that experiments have shown that certain types of elementary particles exhibit behavior 14 W. Feller, Introduction to Probability Theory and Its ... 1.2 (Coin Tossing) As we have noted, our intuition suggests that the probability of obtaining a head on a single toss of a coin is 1/2. To have the computer toss a coin, we can ask...

Ngày tải lên: 21/02/2014, 09:20

... 1.2 (Coin Tossing) As we have noted, our intuition suggests that the probability of obtaining a head on a single toss of a c oin is 1/2. To have the computer toss a coin, we can ask it to pick ... early problems of probability might well have been suggested by gamblers’ exp eriences . It is natural for anyone trying to understand probability theory to try simple experiments by...

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