a. Calculate the long-term volatility estimate for each of the three companies. LTV T+1 T+2 T+3 T+4
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a. Calculate the long-term volatility estimate for each of the three companies.
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LTV T+1 T+2 T+3 T+4 T+5 Dates T+1 T+2 T+3 T+4 T+5 PEP PEP KDP KDP KO PORT 0.01266744 0.01154707 0.01437127 0.01045763 0.01653961 0.01260637 0.01141208 0.0143771 0.01040199 0.01656487 0.01254796 0.01127897 0.01438289 0.01035147 0.01658984 0.01249211 0.01114772 0.01438864 0.01030561 0.01661452 0.01243871 0.01101831 0.01439436 0.010264 0.01663892 KO SP500 Portfolio SP500 0.00016721 0.00018937 0.00018395 0.00011817 0.00020675 0.0001664 0.00018716 0.00018403 0.00011754 0.00020706 0.00016563 0.00018498 0.0001841 0.00011697 0.00020737 0.0001649 0.00018282 0.00018417 0.00011645 0.00020768 0.00016419 0.0001807 0.00018425 0.00011598 0.00020799 LTV T+1 T+2 T+3 T+4 T+5 Dates T+1 T+2 T+3 T+4 T+5 PEP PEP KDP KDP KO PORT 0.01266744 0.01154707 0.01437127 0.01045763 0.01653961 0.01260637 0.01141208 0.0143771 0.01040199 0.01656487 0.01254796 0.01127897 0.01438289 0.01035147 0.01658984 0.01249211 0.01114772 0.01438864 0.01030561 0.01661452 0.01243871 0.01101831 0.01439436 0.010264 0.01663892 KO SP500 Portfolio SP500 0.00016721 0.00018937 0.00018395 0.00011817 0.00020675 0.0001664 0.00018716 0.00018403 0.00011754 0.00020706 0.00016563 0.00018498 0.0001841 0.00011697 0.00020737 0.0001649 0.00018282 0.00018417 0.00011645 0.00020768 0.00016419 0.0001807 0.00018425 0.00011598 0.00020799
Expert Answer:
Answer rating: 100% (QA)
ANSWER To calculate the longterm volatility estimate for each of the three companies we need to calculate the standard deviation of their returns over the given time period Heres how you can do it 1 C... View the full answer
Related Book For
International Management Culture, Strategy, and Behavior
ISBN: 978-0077862442
9th edition
Authors: Fred Luthans, Jonathan Doh
Posted Date:
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