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John Moffat.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › SPREAD
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.
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.