S18.2 Jensen's Inequality | Introduction to Probability | Electrical Engineering and Computer Science | MIT OpenCourseWare
S18.2 Jensen's Inequality | Introduction to Probability | Electri…
Apr 7, 2022
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In this exercise we derive a kind of Jensen inequality for the ... | Filo
In this exercise we derive a kind of Jensen inequality for the ... | Filo
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yourquant_rick on Instagram: "Jensen’s Inequality is one of those ideas that sounds abstract until you realize it explains a huge chunk of modern finance. At its core, it’s about how randomness interacts with curvature. If you take nothing else away from this, remember one sentence: when a payoff is convex, uncertainty increases value. Formally, Jensen’s Inequality says that for a convex function 𝑓 and a random variable 𝑋, the expected value of the function is greater than or equal to the func
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