I have a question and I literally don't know where to begin. I am provided with a table of stock prices of Microsoft from August 13 to November 1, 2001. It includes the following headings: Date, Open,...


I have a question and I literally don't know where to begin.


I am provided with a table of stock prices of Microsoft from August 13 to November 1, 2001.  It includes the following headings:  Date, Open, High, Low, Close, and Volume.


I am supposed to estimate the volatility parameter, sigma, using the "standard estimator of volatility".  I have that the formula is sigma=S times the square root of 252.  I also have the formula for S.  As I said, I don't know where to start or what I need to do to solve the problem.  Thanks!



Jun 02, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here