Hi,
thanks for your amazing lectures. really loved your explanation with graph and making things practical. just fascinated with one thing though. May I ask(for knowledge purpose) the logic of those numbers(fractions and power) used in the formulae for spread and how accurate this can be in estimating the limits of the cash.
thanks.
Ask the Tutor ACCA FM
SPREAD
5y ago#1I assume that you are referring to Miller-Orr, in which case the logic comes from the application of normal distribution theory, which is outside the scope of Paper FM.
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