(Calculating daily volatility) If the volatility of a stock is 30% and assuming 250 trading days a...

Question:

(Calculating daily volatility) If the volatility of a stock is 30% and assuming 250 trading days a year, what is the standard deviation of the return in one trading day?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

See More Books

Question Posted: Jun 10, 2024 02:01 AM

See More Questions

Evaluate the potential gains and losses for forwards,future,call options,put options and swaps. Outline and describe the different risks that each type of derivative contract faces. Describe...
Need help with the attached questions from finance major Assignment 3 Questions 1. Anle Corporation has a current price of $27, is expected to pay a dividend of $2 in one year, and its expected price...
Dear Sir I Would like the answers of the documents i attach School of Business and Economics EXAM Course : Code : Date Time Location Risk Management EBC4056 : 3 June, 2010 : 9.00 - 12.00 : MECC...
Determine whether each relation defines y as a function of x. Give the domain. Identify any linear functions. y = |x|
Consider the situation of Exercise 10.24 a. Use the Excel output in Figure 10.7 and a critical value to test H0: 21 = 22 versus Ha: 21 22 with a = .05. What do you conclude? b. Does it make sense to...
Read the quote at the beginning of this section. Interpret the quote in terms of what you have learned about discount points. People are living longer than ever before, a phenomenon undoubtedly made...
2. Lin and Que are partners with capital balances of $50,000 and $70,000, respectively, and they share profits and losses equally. The partners agree to take Dun into the partnership for a 40 percent...
Western Wood Products Company prepared the following factory overhead cost budget for the Press Department for February 2010, during which it expected to require 10,000 hours of productive capacity...
Statement of Cash Flows Direct Method The comparative balance sheet of Canace Products Inc. for December 3 1 , 2 0 Y 6 and 2 0 Y 5 , is as follows: Dec. 3 1 , 2 0 Y 6 Dec. 3 1 , 2 0 Y 5 Assets Cash $...
(Implied volatility) Consider a put option trading on a stock with a year to maturity. The implied volatility of the option at the opening is 25% and at closing 22%. Assuming that the stock prices...
(BlackScholes and putcall parity) The price of a share of ABC Corporation stock is currently S = $55. Assume that the yearly interest 2% and that the stocks annual volatility is 0.4. a. Determine the...
The following data represent the percentage of total adjusted gross income (AGI) earned and percentage of tax paid by various income classes. The top 1% represents the percentage of total AGI earned...
Woodruff Company is currently producing a snowmobile that uses five specialized parts. Engineering has proposed replacing these specialized parts with commodity parts, which will cost less and can be...
What was Newell's organizational culture like before acquiring Rubbermaid? What was the quadrant? Is the perspective short or long term, inside or outside focused, interested in people, process, or...
(7.47 of Koretsky 2nd edition) A binary mixture of species 1 and 2 can be described by the following equation of state: P = a 0 VoT The pure species coefficients are given by: amix y1a1a2Y2 with the...
What's your favourite way to promote and build interpersonalwellness? How do you nurture your relationships? How do you build friendships? How do you show your loved ones that you care? Share your...
What is the best way to summary this formation? IMC Communication Objectives Increase from 0% to 75% of Millennials in the Dallas-Fort Worth area, ages 22 - 34, with a four-year college degree,...
On January 1, 2013, Chavez Corp. issued $200,000 of 10-year, 6 percent bonds at their face value. Interest is payable on December 31 of each year with the first payment due December31, 2013. Required...
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2...
Prepare the adjusting journal entries and Post the adjusting journal entries to the T-accounts and adjust the trial balance. Dresser paid the interest due on the Bonds Payable on January 1. Dresser...
Venneman Company produces a product that requires 7 standard pounds per unit. The standard price is $11.50 per pound. If 3,900 units required 28,400 pounds, which were purchased at $10.92 per pound,...

(Calculating daily volatility) If the volatility of a stock is 30% and assuming 250 trading days a...

Question:

Step by Step Answer:

Principles Of Finance Wtih Excel

Students also viewed these Business questions