Calculate volatility for dollar general corporation

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The basic calculation for volatility (denoted ) as used in option pricing is the annualized standard deviation of continuously compounded daily returns. Calculate volatility for Dollar General Corporation (NYSE: DG) based on its closing prices for two weeks, given in the table below. (Annualize based on 250 days in a year.)

Dollar General Corporation Daily Closing Stock Price

Date

Closing Price ($)

27 January 2003

10.68

28 January 2003

10.87

29 January 2003

11.00

30 January 2003

10.95

31 January 2003

11.26

3 February 2003

11.31

4 February 2003

11.23

5 February 2003

10.91

6 February 2003

10.80

7 February 2003

10.47

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In the given assignment, we were required to analyse the statistical problem and to determine the variance the returns.

Reference no: EM132283962

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len2283962

4/15/2019 5:14:25 AM

Please solve the problem in the word document that attached into the file section. The pdf is information and instruction on how to solve the problem is also attached in the file section. I need this assignment tomorrow night April 14 eastern time.

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