FE515 – 0302

Shape Construction

2008 is the collapse of the EMH. (Efficient Market Hypothesis)

The more and more getting into the social science, the person actions , are not rational.

behaviour finance getting more and more hotter, so we have more and more uncertainty due to irrational social human reactions.

20 is not part of the 20.

we will check how many observations we have there.

we want to write the frequency of the numbers, not the numbers itself.

Histogram on the Barchart

bin range: upbber boundaries of each class.

1. We will provide the bin range

2. Use data analytics toolpack

After remove data gap:

Why all the time we want to achieve a normal distribution shape ? what is the aim of that ? (EXAM)

We have to sort it first, then we will let the excel calculate the bin rate.

2nd Part.

why just call it a variable but call it a random variable ?

Because there are uncertainty, the existance of P numbers, coordinated with the real values.

Range: $-\mathrm{\infty }.\mathrm{\infty }$$-\infin . \infin$

3 different random variables. because we have 3 different shapes, and the ranges are changes. old markets there is no globalazation, everything around mean vaule.

New markets, china open, globalazing starting, inflation is kind of low, and we have big ganes, red shape.

what is the random variable:

There is no random variable here, this is a time series data.

There is no rv

RV - Sales

Portfolio = x + y (weight is 1)