Volatility: Random Walks - Finance Maths Demystified - Part 2
Links:
Investopedia: https://www.investopedia.com
Dive deeper into finance math with this exploration of volatility and standard deviation. Learn how these concepts are visualized through random walks, calculated using variance, and annualized for long-term analysis. Discover the relationship between volatility and risk, and how these ideas lay the foundation for advanced topics like the Sharpe Ratio and Efficient Frontier. Perfect for engineers and anyone wanting to understand the mathematical basis of investing and portfolio management.
Timestamps:
00:00 - Intro
00:54 - Volatility Definition
02:30 - Random Walk Explanation
04:20 - Additive Random Walk
07:45 - Geometric Random Walk
10:19 - Outro
#volatility #standarddeviation #finance #investing