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What Means to Rebalance the Replicating Portfolio

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What means to rebalance the Replicating Portfolio?


Definitions:

Probability

The mathematical likelihood of an event happening, often expressed as a fraction or percentage.

Independent Events

Two or more events where the occurrence or non-occurrence of one does not affect the occurrence of the other(s).

Seat Belts

Safety devices designed to secure the occupant of a vehicle against harmful movement that may result during a collision or a sudden stop.

Mean Number

The mean value obtained from a series of numbers, determined by adding all the numbers together and then dividing by the total number of values in the series.

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