The volatility of a stock price is 30% per annum. What is the standard deviation of the
Question:
The volatility of a stock price is 30% per annum. What is the standard deviation of the percentage price change in one trading day?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
The standard deviation of the per...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
The volatility of a non-dividend-paying stock whose price is $78, is 30%. The risk-free rate is 3% per annum (continuously compounded) for all maturities. Calculate values for u, d, and p when a...
-
A call option is the right to buy stock at $50 a share. Currently the option has six months to expiration, the volatility of the stock (standard deviation) is 0.30, and the rate of interest is 10...
-
A stock price is currently $40. Assume that the expected return from the stock is 15% and its volatility is 25%. What is the probability distribution for the rate of return (with continuous...
-
Use the data in Exercise 13.28.To familiarize yourself with recursive least squares, estimate the savings functions for 19701981, 19701985, 19701990, and 19701995. Comment on the stability of...
-
How is the value of a bond determined? What is the value of a 10-year, $1,000 par value bond with a 10 percent annual coupon if its required rate of return is 10 percent? MINI CASE Sam Struthers and...
-
Find the function value using a calculator set in RADIAN mode. Round the answer to four decimal places, where appropriate. csc 4.16
-
How do patrilineal patrilocal families differ from matrilineal families?
-
Rehab Health Care, LLC, incurred the following service-related activity costs for the month: Total sales ................$42,000 Customer complaint processing ....... 1,200 Employee training...
-
The Larisa Company buys machinery on April 1, Year One, for $40,000 with an expected life of ten years and residual value of $10,000. The double-declining balance method is applied along with the...
-
Westfield Capital Management Co.s equity investment strategy is to invest in companies with low price-to-book ratios, while considering differences in solvency and asset utilization. Westfield is...
-
With the notation used in this chapter (a) What is N'(x)? (b) Show that SN'(d 1 ) = Ke r(Tt) N'(d 2 ), where S is the stock price at time t (c) Calculate (d) Show that when where c is the price of a...
-
Use the result in equation (15.17) to determine the value of a perpetual American put option on a non-dividend-paying stock with strike price K if it is exercised when the stock price equals H where...
-
Property, plant, and equipment ( plant assets) generally represent a material por-tion of the total assets of most companies. Accounting for the acquisition and use of such assets is therefore an...
-
Athens Gas Station has figured out the weekly demand distribution for their gas sales. Each gallon of gas sold at the pump results in a profit of 10 cents/gallon and any lost sales results in a cost...
-
Isabella wants to sell her new device for $100. The overhead expenses have come out to 25% of the cost. The profit is set at 50% of cost. Round each answer to the cent and do not input the S symbol....
-
Anne Borts, a first year university student, believes that the price elasticity of demand for her economics textbook is relatively inelastic. She argues 'I was told I had to purchase a book written...
-
Explore the concept of organizational learning and its significance in fostering innovation and adaptability, examining the role of knowledge management systems, learning organizations, and...
-
Use synethic division to divide. (7x^2-7x+9+ 3x^3)/(x+1)
-
Martinez Industries manufactures toasters. For the fi rst 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,000...
-
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
-
Estimate delta, gamma, and theta from the tree in Example 18.1. Explain how each can be interpreted.
-
The DerivaGem Application Builder functions enable you to investigate how the prices of options calculated from a binomial tree converge to the correct value as the number of time steps increases....
-
The DerivaGem Application Builder functions enable you to investigate how the prices of options calculated from a binomial tree converge to the correct value as the number of time steps increases....
-
Determine the exponential function y = c(b) that goes through the points (-2, 16) and (1,54). Algebraic work must be shown for full credit.
-
Solve 6. 8. 8 So log x (1 + x)(4+ x) [log x] 2 dx 0 1 + x So dx
-
1.14 Show that the filter with coefficients [a-2, a-1, a0, a1, a2] = [-1, 4, 3, 4, -1] passes third-degree polynomials and eliminates seasonal components with pe- riod 3.
Study smarter with the SolutionInn App