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Define in words the volatility, the correlation and the market beta of a stock of your choice, with respect to a relevant market index. Describe
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Define in words the volatility, the correlation and the market beta of a stock of your choice, with respect to a relevant market index.
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Describe the exponentially weighted moving average (EWMA) model and the historical model for estimating the volatility, the correlation and the market beta.
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Explain what the parameters are, describe how each parameter influences the result.
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Compare and contrast the advantages and limitations of the 2 models.
(600-900 words)
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