Download daily stock price data for SK Telecom (017670.KS) and Kia Motors (000270.KS) for the calendar year Dec 30, 2011 through Dec 31, 2012. Use data form Yahoo nance ( nance.yahoo.com). (a) (5 points) Compute mean and standard deviation of the daily returns. Annualize the standard deviation. (b) (5 points) Compute the square root of the average of the daily returns squared. How does it compare to the volatility computed under part (a)? (c) (20 points) Compute the daily weights assigned to the return squared gures if the daily returns are exponentially weighted. Assume levels of of 0.25, 0.5, and 0.75. Compute the annualized weighted squared returns under each assumption for . During the year 2012, are SKT volatility and KIA volatility higher or lower towards the end of year?

5. (30 points) Download daily stock price data for SK Telecom (017670.KS) and Kia Motors (000270.KS) for the calendar year Dec 30, 2011 through Dec 31, 2012. Use data form Yahoo finance (finance.yahoo.com). (a) (5 points) Compute mean and standard deviation of the daily returns. Annualize the standard deviation. (b) (5 points) Compute the square root of the average of the daily returns squared. How does it compare to the volatility computed under part (a)? (c) (20 points) Compute the daily weights assigned to the return squared figures if the daily returns are exponentially weighted. Assume levels of of 0.25, 0.5, and 0.75. Compute the annualized weighted squared returns under each assumption for . During the year 2012, are SKT volatility and KIA volatility higher or lower towards the end of year