You observe the following daily closing prices for a stock over two trading weeks: time price 10 16.09 1 15.24 2 15.94 3 16.83 4 15.81 S 15.54 16. 15.79 7 14.03 8 16.31 9 16.85 Calculate the annualized volatility of the continuously compounded daily returns for this stock, assuming daily continuously compounded returns are independent and identically distributed. Annualize based on 250 trading days in a year. Enter answer as a percentage, to two decimal places.
You observe the following daily closing prices for a stock over two trading weeks: time price 10 16.09 1 15.24 2 15.94 3 16.83 4 15.81 S 15.54 16. 15.79 7 14.03 8 16.31 9 16.85 Calculate the annualized volatility of the continuously compounded daily returns for this stock, assuming daily continuously compounded returns are independent and identically distributed. Annualize based on 250 trading days in a year. Enter answer as a percentage, to two decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You observe the following daily closing prices for a stock over two
trading weeks:
time price
10
16.09
1
15.24
2
15.94
3
16.83
4
15.81
S
15.54
16.
15.79
7
14.03
8
16.31
9 16.85
Calculate the annualized volatility of the continuously compounded
daily returns for this stock, assuming daily continuously
compounded returns are independent and identically distributed.
Annualize based on 250 trading days in a year.
Enter answer as a percentage, to two decimal places.
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