Question
Using the data provided, calculate daily log returns and estimate the model parameters. Ignore any non-trading days. Assume there are 252 trading days in one
Using the data provided, calculate daily log returns and estimate the model parameters. Ignore any non-trading days. Assume there are 252 trading days in one year. NOTE: I understand data is not given here, however what id like to know is what it means by estimating model parameters if anyone can give me an example. In the data provided there are trading close prices from 10 companies spanning over 2 years (ignoring non trading days we assume there are 252 trading days in one year). Based on this can anyone explain to me what is meant by estimating model paramters with a simple example i can follow. Thankyou for your help!
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