Constancy hypothesis
In relation to the financial market, the assumption that correlations and volatilities of financial market products are basically constant over time. At the latest since the subprime crisis, this assumption – which was implicit in many mathematical models of financial theory and in some cases still is to this day – has proven to be fallacious. – See Elizabeth Question, Financial Market Models.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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