Question: I am completely unfamiliar with volatility, we just started learning about the economic phenomenon of response formulas. How do I find the percent changes with

I am completely unfamiliar with volatility, we just started learning about the economic phenomenon of response formulas. How do I find the percent changes with the information given? Is it similar to the formula x(t+1)=x(t)*R(x)?

I am completely unfamiliar with volatility, we just started learning about the

Question 4 (2 points) Compute the percent changes from X(O) to X(1) with the given values of starting X(O) and the volatility v. Record your answers below by referring to the table shown. For example, if you found that with initial X(O) = 0.4 and volatility v = 1, the percent change from X(O) to X(1) is 33%, then type "B = 33" in the textbox. Record the values for A, B, C, D, E, and F. v=0.5 v=1 11:2 A% B% 0% X(0)=2 D% E% F%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!