Q1. Using 625 trading days of data, you estimated the daily log return follows a normal distribution with a mean of 5 bps and and a stdev of 125 bps. Q1a. based on information above, what is the...

Q1. Using 625 trading days of data, you estimated the daily log return follows a normal distribution with a mean of 5 bps and and a stdev of 125 bps.

Q1a. based on information above, what is the probability of true daily log return average is 0? can you reject the true mean is 0? can you reject the true mean is 10 bps?

Jun 01, 2022

SOLUTION.PDF

Q1. Using 625 trading days of data, you estimated the daily log return follows a normal distribution with a mean of 5 bps and and a stdev of 125 bps. Q1a. based on information above, what is the...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment