Estimate the stock price volatility

Reference no: EM13712512

Assume that observations on a stock price at the end of each 15 consecutive week are
30.2, 32, 31.1, 30.1, 30.2, 30.3, 30.6, 33, 32.9, 33 , 33.5, 33.5, 33.7, 33.5 , 33.2

estimate the stock price volatility. Use trading days to estimate volatility. Number of trading days in a year = 252. Note: the time-step for observation is one calendar week, but you need to use trading days to compute the estimate.
Use the log formula to express returns; use the unbiased estimator for the variance, take the mean into account when computing the volatility. Clearly write all the formulas you're using.

Reference no: EM13712512

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