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SPREAD

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › SPREAD

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by John Moffat.
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  • Author
    Posts
  • September 18, 2021 at 8:47 am #635938
    ABDULLAHI312
    • Topics: 82
    • Replies: 68
    • ☆☆

    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.

    September 18, 2021 at 11:22 am #635957
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49598
    • ☆☆☆☆☆

    I 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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