Use the classical and robust EWMA volatility estimate and UMT functions (Code 6.4 and Code 6.5) on a few stocks from each of the four market cap categories. What do you conclude about the prevalence...


Use the classical and robust EWMA volatility estimate and UMT functions


(Code 6.4 and Code 6.5) on a few stocks from each of the four market cap


categories. What do you conclude about the prevalence of outliers and


overestimation of volatility following isolated outliers? What do you


conclude about the potential usefulness of a robust UMT?



May 26, 2022
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