dt qt pt rt in R for Financial Analytics

If you work with financial data long enough, one thing becomes very clear. Most real decisions happen with limited data. Not 10 years of returns. More like 10 or 15 days. That is exactly where people misuse normal distribution and get confident too early. I did the same mistake once, and it cost a client a bad recommendation. That is when I started using Student t distribution properly.

Let me walk you through this the way I actually think about it.