The interest rate as a stochastic variable – possible answer to financial markets volatility
Journal Title: Acta Economica - Year 2012, Vol 10, Issue 16
Abstract
This paper presents the interest rate in terms of consistent market, i.e. function of interest is defined as a continuous function which further allows to view the interest rate as a stochastic variable. In this context Stoodley`s formula is presented as a possibility of adequate evaluation of capital cost in terms of consistent market.
Authors and Affiliations
Бојан Башкот
Keywords
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