User Account

All Pages

Estimate of the daily volatility

Assignment Help Finance Basics
Reference no: EM13961084

The most recent estimate of the daily volatility of the U.S. dollar-sterling exchange rate is 0.6%, and the exchange rate at 4 p.m. yesterday was 1.5000. The parameter in the EWMA model is 0.9. Suppose that the exchange rate at 4 p.m. today proves to be 1.4950. How would the estimate of the daily volatility be updated?

Reference no: EM13961084

Questions Cloud

Write an essay on past academic experiences : Assume you are trying to switch universities in your second year and you want to continue your studies in Maryland from Canada. Write an essay on past academic experiences and your reasons for wishing to enroll to university of Maryland at this po..
Value at risk for the portfolio : Assume that the daily volatilities of both assets are 1% and that the coefficient of correlation between their returns is 0.3. What is the 5-day 99% value at risk for the portfolio?
Persuasive paper on a legal or ethical issue : For your long paper assignment, you will be asked to write a persuasive paper on a legal or ethical issue of your choice related to the healthcare industry. The topic of the paper needs to be a narrow issue that you can research thoroughly and de..
Determine the dynamic reactions at supports a and b : The helicopter can produce a maximum downward air speed v = 24m/s in a slipstream of diameter D = 9 m. Knowing that the weight of the helicopter and crew is 15 kN and assuming air density ρ= 1.21 kg/m3 , determine the maximum load that helicopter ..
Estimate of the daily volatility : The parameter in the EWMA model is 0.9. Suppose that the exchange rate at 4 p.m. today proves to be 1.4950. How would the estimate of the daily volatility be updated?
What legal or ethical issues would you consider : What legal or ethical issues would you consider as you select participants, if you were granted permission to answer one of these questions through a structured study at your school or agency
Provide the pw of this project and comment on desirability : You are considering buying a new SUV for your late-night beer delivery service. The SUV will cost $25,000, with a salvage value of $5,750 after five years. The vehicle will be used to travel 30,000 miles per year. You expect to have a yearly income o..
Prices of the assets at close of trading : (a) Calculate the current estimate of the covariance between the assets. (b) On the assumption that the prices of the assets at close of trading today are $20.5 and $40.5, update the correlation estimate.
Describe data cleaning and data dredging : Describe data cleaning and data dredging and what is the difference between primary and secondary data collection?

Reviews

Write a Review

Finance Basics Questions & Answers

  How may you optimize the impact and accuracy

what might have holes in it and what would the final numbers, when they are presented, really mean? How may you optimize the impact and accuracy of such a presentation?

  When is the most favorable time to replace the machinery

The annual income is less the operating expense is expected to be $50,000. Annual interest is 6 percent compounded annually.

  Calculate the cost of equity using the dividend growth

A stock's last dividend was $0.80 and dividends grow at 5%; the stock's price is $61. In addition, the stock's beta is 1.50, the risk free rate is 5.5%, and the return on the market is 12%.

  What is the list price of the bond on the settlement date

what is the list price of the bond on the settlement date? What is the accrued interest on the bond? What is the invoice price of the bond?

  In a typical month the bungee jump corporation receives 100

in a typical month the bungee jump corporation receives 100 checks totaling 90000. these are delayed six days on

  Describe the alternative plans

Assuming the investment banking firm is willing to distribute your securities, describe the alternative plans that might be included in a contract with the banking firm.

  The current price of a non-divident paying stock is 30 over

the current price of a non-divident paying stock is 30. over the next six months it is expected to rise to 36 or fall

  How much can the investor expect in annual interest

Tangshan Coal, Inc. just issued a 10 percent, 25-year bond with a $1,000 par value that pays interest semiannually. (a) How much can the investor expect in annual interest (in dollars)?

  Analyze your favorite service company to determine

Analyze your favorite service company to determine what marketing challenges it faces and whether these challenges are the same faced by your favorite nonprofit organization

  Effective use researched expert sources

Please ensure this is properly writing as it shows above how this will be graded. For the subject pick something you can write strongly about. I am a soldier. you can write about war or something else just please follow the grading rubric. Ensure to ..

  Evaluate the importance of the tractors life on npv

Given this discussion, the CFO asks you to prepare a scenario analysis to evaluate the importance of the tractor's life on NPV.

  Last year joan purchased a 1000 face value corporate bond

last year joan purchased a 1000 face value corporate bond with an 7 annual coupon rate and a 25-year maturity. at the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd