Question: please help me with my homework Question 2 a. Let the stocks of IBM, Google and Amazon. You have a time series of observations for

please help me with my homework

Question 2 a. Let the stocks of IBM, Google and Amazon. You have a time series of observations for each stock. The sample size is T. Explain in detail, all steps which are necessary to compute the sample variance-covariance matrix of the three stocks. [5 marks] b. Explain in detail how the implied volatility of an option can be computed. [5 marks] c. Prove that the duration of a zero-coupon bond equals its maturity. [5 marks] d. Do you agree with the statement \"Let a xed income portfolio which has a duration equal to zero. This portfolio is subject to no interest rate risk.\" [5 marks]

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