Hi, I'm a Quantitative Sciences student and a first-time user of Mathcad.
As I do not have information on the asset volatility, I need to compute the value of asset volatility using two equations. However, the comment said that "The variable is undefined.."
May I know how to solve it? Thank you so much.
we outlined the steps as follows –
Please check this Forum for examples of using a solve block with Prime (as it differs w.r.t. Mathcad 15 and before).
Regarding your sheet:
You can omit the "Given".
Move the constraint equations (E=.... and sigmaE*E=...) to the "Constraints" section of the solve block.
Provide a guess value for sigmaA (sigmaA := <a value>) in the "Guess Values" section of the solve block.
Come back here, with your updated sheet if you've done the above and there's still a problem.
Then do not forget to state which version of Prime you are using.
You need a guess value for sigmaA.
And maybe I don't follow what you are trying to do, but the second equation by itself will lead you to a solution for sigmaA. One equation one unknown. (I suppose the first equation should do, but I get no solution found).
Given your setup both equations can't be satisfied with a single sigmaA. Do you need to solve for a second variable also? Like this: