Question: Please show all steps 5. (10 marks) You are to estimate a non-dividend paying stock's annualized volatility using its prices in the past 30 days.

Please show all steps 5. (10 marks) You are to estimate

Please show all steps

5. (10 marks) You are to estimate a non-dividend paying stock's annualized volatility using its prices in the past 30 days. Month 1 2 3 4 5 6 7 8 9 10 Stock price (Rand/share) 90 75 80 120 100 105 95 80 90 115 a) Calculate the historical volatility for this stock over the period. (05 marks) b) Calculate the expected return for this stock over the period (05 marks)

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