The basic calculation for volatility (denoted ) as used in option pricing is the annu- alized standard deviation of continuously compounded daily returns. Calculate volatility for Dollar General Corporation (NYSE: DG) based on its closing prices for two weeks, given in the table below. (Annualize based on 250 days in a year.)

Dollar General Corporation Daily Closing Stock Price Date Closing Price 27 January 2003 $10.68 28 January 2003 $10.87 29 January 2003 $11.00 30 January 2003 $10.95 31 January 2003 $11.26 3 February 2003 $11.31 4 February 2003 $11.23 5 February 2003 $10.91 6 February 2003 $10.80 7 February 2003 $10.47