500+ quant interview questions for Jane Street, Citadel, Two Sigma, DE Shaw, and other top quantitative finance firms.
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Difficulty: Hard
Category: statistical_analysis
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: mle, optimization, scipy, statistics
Asset returns frequently exhibit leptokurtosis, or heavy tails, rendering the Normal distribution insufficient for accurate risk modeling and Value-at-Risk calculations. The Student's t-distribution addresses this by incorporating a degrees-of-freedom parameter to control tail thickness, providing a more robust fit for financial time series. Maximum Likelihood Estimation (MLE) is the standard statistical method used to calibrate these parameters by maximizing the probability of observing the his
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