1. Complete the return columns (remember first cell should be empty)

2. Complete the log return column

3. Create a histogram for log returns and paste it here(number of bins=5)

4. Calculate daily volatility

5. Calculate monthly and yearly volatility assuming 252 trading days per year

6. Now assume Amazon daily log returns are normally distributed with mean and vari- ance 2.

(a) Using above data set calculate point estimator for population mean and population variance 2 using following methods

x 2 n 1 s 2 n

(b) Now assume Amazon stock price today is 1789.21. calculate 95% confidence interval for tomorrow stock price using above calculated mean and variance

(c) What is the probability Amazon stock price will be more than $1800 based on above data?

Problem 1.5. Consider following daily stock prices for Amazon stocks. Duy LorReturn Stock Pric Return o 180172 1 1795.73 2 17.20 3 1771.65 5 1778.00 6 1751.11 2 175.00 1779.49 9 175253 10 1752.72 11 1745.53 12 17.71 1 1765.72 14 17111 15 17.94 10 18185 17 1800.00 18 1781.00 19 1769.95 20 1700.69 21 1740.45 1751.00 23 1709.51 24 1789.21 25 1748.72 20 1760,33 27 1760.94 20 1763.21 29 1790.66 30 179220 Problem 1.5. Consider following daily stock prices for Amazon stocks. Duy LorReturn Stock Pric Return o 180172 1 1795.73 2 17.20 3 1771.65 5 1778.00 6 1751.11 2 175.00 1779.49 9 175253 10 1752.72 11 1745.53 12 17.71 1 1765.72 14 17111 15 17.94 10 18185 17 1800.00 18 1781.00 19 1769.95 20 1700.69 21 1740.45 1751.00 23 1709.51 24 1789.21 25 1748.72 20 1760,33 27 1760.94 20 1763.21 29 1790.66 30 179220