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derivation of formula for portfolio skewness and kurtosis
Where can I find derivation of formula for portfolio skewness and kurtosis? I can find formulas everywhere, but not their derivations?
For example, the portfolio variance formula is well known and I ...
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What is a self-financing and replicating portfolio?
I try to understand the derivation of the Black-Scholes equation based on the "constructing a replicating portfolio".
From mathematical point of view it looks simple. We assume that:
Stock prices ...
