Category: Finance
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Implied odds behind lay betting
In a precedent post, I introduced the concept of back and lay bets on a given event, for example the fact that it will rain on a given day. We also said that we are given some odds $o$, which express how much we can earn if we guess the right outcome between the event…
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An introduction to Risk Parity
Hello everyone! In this post, I’d like to start talking again about asset allocation and in particular to introduce you to a relatively new concept in the field: risk parity. Don’t get me wrong, this approach has been around for quite a while now — I think the first to create a product around this…
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Exchange Sports Betting: how to close your bets?
Good evening, It’s been a very long time since I last posted something on this blog because I have been very busy at work but I thought I will try to be more active from now on. Today, I’d like to share some basic maths about exchange sports betting, and actually we could generalize this…
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CFA Level III: Implementation Shortfall
Good evening, A quick post tonight to discuss a topic of Trading, Rebalancing and Monitoring part of the Level III curriculum called Implementation Shortfall. The reason why I chose to do this is because it took me some time to overcome the naming conventions of the CFA institute, which are, with all due respect, very…
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CFA Level III: Interest Rate Parity
Hello everyone, Today I’m gonna talk about some economic concepts that were mentioned at least since Level II and that are quite useful in the whole curriculum and in finance in general when it comes to dealing with currency management. Covered Interest Rate Parity The idea is quite simple, we will compute the forward exchange…