User Account

All Pages

Current estimate of the volatility

Assignment Help Finance Basics
Reference no: EM131054219

Suppose the long run variance rate in a GARCH(1,1) model is 0.0002 so that the long-run volatility per day is 1.4%.

σ2n=0.00092+0.13u2t-1+0.86σ2n-1

Suppose that the current estimate of the volatility is 1.6% per day and the most recent percentage change in the market variable is 1%.What is the new variance estimate?

Reference no: EM131054219

Questions Cloud

What is the effect of having a smaller number of join : What is the effect of having a smaller number of join conditions?
Rewrite the domain relational calculus queries : Rewrite the domain relational calculus queries
Describe the process of plea bargaining : Would you offer the dealer a plea bargain? If so, what would be the terms you offer? If not, what charges would you file? Explain the factors that would go into your decision making.
List the names of employees who work on every project : List the names of employees who work on every project.
Current estimate of the volatility : Suppose that the current estimate of the volatility is 1.6% per day and the most recent percentage change in the market variable is 1%.What is the new variance estimate?
What would happen if one the steps were missing : 1. Examine the various steps of a research design and indicate the value that each step brings to the process. what would happen if one the steps were missing? Could these steps occure in a different order?
Question regarding the break-even point : A corporation sold X units of product for $Y each and has $M in total fixed and $L in total variable costs (a) find its break-even point (in units) in terms of L, M, X and Y. (b) use any part of or all of your answer to part (a) to find profit ear..
Specify and execute the following queries for the database : Retrieve the names of students who have enrolled in a course that uses a textbook published by Addison-Wesley.
Approach versus the other : One of the key issues in valuation is whether to value just the equity portion of a firm or to value the entire enterprise. What are the arguments on both sides of this issue. Again, discuss what types of companies/situations might be best suited ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the adjusted basis

Cassandra sells property for a sales valueof $150,000. In addition, Lana, the buyer, pays $5,000 in property taxes that had accrued during th year while property was still legally owned through Cassandra.

  Happy valley homecare suppliers inc hvhs had 20 million in

happy valley homecare suppliers inc. hvhs had 20 million in sales in 2010. its cost of goods sold was 8 million and

  Harrison clothiers stock currently sells for 35 a share it

harrison clothiers stock currently sells for 35 a share. it just paid a dividend of 3 a share that is d0 3. the

  Fixed annual year-end contribution

You need to show all the steps involved to derive your final answer. If you come to the correct conclusion but do not show all/any necessary steps, you will not earn all/any points on this project.

  Determine the payback of the project

A company is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for 5-years. Determine the payback of the project?

  How many may he purchase using a margin brokerage

The answers are 60 @ 17.65% and 100 @ 28.04%. I know how to get the number of shares, but can't I get the yield rates. Thanks.

  Which of the two options should patricia pursue if she

patricia is researching venues for a restaurant business. she is evaluating three major attributes that she considers

  Explain what it means for a firm to have a current ratio

explain what it means for a firm to have a current ratio equal to 0.50. would the firm be better off if the current

  Regina henry deposited 20000 in a money market certificate

regina henry deposited 20000 in a money market certificate that provides interest of 10 compounded quarterly if the

  A company has 30 million portfolio with a beta of 15 the

a company has 30 million portfolio with a beta of 1.5. the futures price for a contract on the sampp index is 900.

  Cfo of mid-sized company

Suppose the role of a CFO of a mid-sized company that exports to Europe. Your company received a contract to supply components to a German manufacturer.

  What is the present value of the annuity

a 10 year annuity pays $5,000 monthly, in arrears. If the required return is 9% APR compounnded monthly for the first 4 years, followed by 6% APR compounded monthly thereafter, what is the present value of the annuity?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd