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Exponentially weighted moving average model

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Under the Exponentially Weighted Moving Average model the daily volatilities on days n-1 and n are respectfully estimated to be 0.26 and 0.24. The daily percentage changes on days n-1 and n are respectfully -0.20 and 0.22. Estimate the volatility on day n+1.

Reference no: EM132851563

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Exponentially weighted moving average model : Under the Exponentially Weighted Moving Average model the daily volatilities on days n-1 and n are respectfully estimated to be 0.26 and 0.24.
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