Question

Please show all work legibly for rating. Consider the following collection of n = 9 closing...

Please show all work legibly for rating.

Consider the following collection of n = 9 closing prices for stock

ABC: 101.02, 102.23, 100.34, 99.87, 98.65, 96.45, 98.45, 99.00, 100.05

Compute the standard estimator of the volatility parameter σ using these closing prices.

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

we have to find population standard deviation for the volatility

mean = (sum of all closing prices)/(total number of closing prices)

= (101.02+102.23+100.34+99.87+98.65+96.45+98.45+99.00+100.05)/9

= 896.06/9

= 99.562 =

Population standard deviation =

so, required  standard estimator of the volatility parameter σ is 1.57 (2 decimals)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Please show all work and explain your work! 1.) Consider the following sample of observations on...
Please show all work and explain your work! 1.) Consider the following sample of observations on coating thickness for low-viscosity paint. Assume that the distribution of coating thickness is normal (a normal probability plot strongly supports this assumption). 0.82 0.88 0.88 1.05 1.09 1.22 1.29 1.31 1.45 1.49 1.59 1.62 1.65 1.71 1.76 1.83 (a) Calculate a point estimate of the value that separates the largest 10% of all values in the thickness distribution from the remaining 90%. [Hint: Express...
Suppose X ~ N(μ, σ^2 ). Please show all work. a. Show that the normal pdf...
Suppose X ~ N(μ, σ^2 ). Please show all work. a. Show that the normal pdf is in fact a pdf. b. Show E[X]= μ.
Please show all your work and please answer all the questions. It is greatly appreciated with...
Please show all your work and please answer all the questions. It is greatly appreciated with a thumbs up. Thank you! 11. Calculate the Binomial mean if n=40, and q= 0.73. 12. Calculate the Binomial standard deviation if n=36 and 'p=0.45. 13. Basketball player Darby Missalot makes a free throw 75% of the time. What are the chances he will sink his first basket on the 3rd or 4th attempt? 14. The average number of speeding tickets written per year...
please solve and show steps. 1. The closing stock price of Ahmadi, Inc. for a sample...
please solve and show steps. 1. The closing stock price of Ahmadi, Inc. for a sample of 10 trading days is shown below. Day Stock Price 1 135 2 137 3 144 4 138 5 135 6 139 7 151 8 133 9 232 10 166 For the above sample, compute the following measures. a. The mean b. The median c. The mode d. The range 2. The flashlight batteries produced by one of the northern manufacturers are known to...
Please answer all parts of the following question. Please show all work and all steps. 1a.)...
Please answer all parts of the following question. Please show all work and all steps. 1a.) Let Xn be a Marcov chain with the states S = {0,1} starting from 0. The transition probability is given by p = ( 1/3 2/3) 1/2 1/2 Compute P(X2=1) and compute P(X3=0 given X2=1) 1b.) Suppose that T1 and T2 are stopping times. Determine whether the following are stopping time or not: (1) T1 + T2, (2) T1 − 1 (assuming T1 ≥...
Can you please show all work and an explanation. 9) Of the following equilibria, only ________...
Can you please show all work and an explanation. 9) Of the following equilibria, only ________ will shift to the right in response to a decrease in volume. A) H2 (g) + Cl2 (g) <--->  2 HCl (g) B) 2 SO3 (g) <---> 2 SO2 (g) + O2 (g) C) N2 (g) + 3H2 (g) <---> 2NH3 (g) D) 2 Fe2O3 (s) <---> 4 Fe (s) + 3O2 (g) E) 2HI (g) <--->  H2 (g) + I2 (g)
PLEASE SHOW WORK The following annual returns for Stock E are projected over the next year...
PLEASE SHOW WORK The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the stock’s standard deviation, variance, and mean of returns?E(R) = 8.5% ; σ = 22.70%; mean = $7.50; standard deviation = $2.50 State Prob E(R) Boom 10% 40% Normal 60% 20% Recession 30% - 25%
Please show all your work and all 8 steps for each of the following problems (do...
Please show all your work and all 8 steps for each of the following problems (do them by hand, not with SPSS): 2. The mean Verbal SAT score for the population of incoming students at UM – Dearborn is 520 with a standard deviation of 95. Our department chair believes that the mean Verbal SAT of first year behavioral science majors is significantly greater than the mean score of the population. The mean of a sample of 36 first year...
Please show all work. Consider a call option with one year time remaining to expiration and...
Please show all work. Consider a call option with one year time remaining to expiration and the table below Time Stock Price Call Exercise Price Call premium Now 33 30 4 Later 29 30 1    Provide the result of the covered call writing strategy in the table below in the context of marking to market only. Time Stock Position Call Option Position Net or combined position Now Action: Action: Result: 6 months later Action: Action: Result: Results in $...
.Calculate mean and standard deviation for the following asset. Please show all work. Economic State                          ...
.Calculate mean and standard deviation for the following asset. Please show all work. Economic State                           Return                        Probability Recession                                      -20%                           20% Normal                                          18%                             50% Boom                                            35%                             30%
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT