## Comment on Live Example -1

With due permission from Karthik sir, I will try to explain sigma,

Sigma is the standard deviation of residual, which we get while we hedge Y in terms of X.

Hope I am right!!!

With due permission from Karthik sir, I will try to explain sigma,

Sigma is the standard deviation of residual, which we get while we hedge Y in terms of X.

Hope I am right!!!