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Suppose that the current date is January 21, 2016. Estimate the volatility and instantaneous drift RW for Google (ticker symbol GOOGL) using its adjusted closing
Suppose that the current date is January 21, 2016. Estimate the volatility and instantaneous drift RW for Google (ticker symbol GOOGL) using its adjusted closing prices from Yahoo! Finance for the period from January 20, 2016 to September 15, 2015. The data will consist of 90 daily log returns over the past 91 trading days. Carry out similar estimates with the past 60 daily log returns and then the past 30 daily log returns. Annualize your results using 252 trading days in a year. Discuss your findings.
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