User Account

All Pages

Probability distribution of returns conditional

Assignment Help Finance Basics
Reference no: EM133067886

Suppose today's volatility were estimated to be σ, and the realized return was u=-2%. Which of the following values of σ would yield the highest likelihood? Assume that the probability distribution of returns conditional on the volatility is normal, expected daily return is zero.

Reference no: EM133067886

Questions Cloud

What is the six-step process involved in a valuation : What is the six-step process involved in a valuation? List the six steps in sequence, explaining and discussing the importance and relevance of each step
Determine the bond convexity : Suppose the yield curve is flat at 4%, and you bought 100 4-year, 2% coupon bonds with faces of $1,000, exposing you to IR risk.
What is the equivalent annual cost : The first, the AC360, costs $26,328.00 to install, $5,056.00 to operate per year for 7 years. What is the equivalent annual cost
Describe linear hierarchical difference between them : Write a short paragraph on various R-objects and describe the linear hierarchical difference between them.
Probability distribution of returns conditional : Suppose today's volatility were estimated to be s, and the realized return was u=-2%. Which of the following values of s would yield the highest likelihood?
Tranche of the abs and the abs cdo : An ABS, based on portfolios of subprime mortgages, consists of a senior tranche (owed 25% of the cash flow), a mezzanine tranche (owed 35%) and an equity tranch
Planning for total capital expenditures : What amount is the company planning for total capital expenditures if it plans to borrow $4,000,000 in new debt?
Calculate the premium or discount that this offer represents : ABC Inc. offers R56.8 per share for TU Corporation's shares which are trading at R43.6 per share. Calculate the premium or discount that this offer represents
What is the 1-year interest rate : Assume that the real risk-free rate is 2% and that the maturity risk premium is zero. If a 1-year Treasury bond yield is 5% and a 2-year Treasury bond yields 7%

Reviews

Write a Review

Finance Basics Questions & Answers

  Violation of the efficient market hypothesis

Is this a violation of the efficient market hypothesis? Explain

  Bond issue and public relations

The local media are considering coming out in support of the Mayor's position on issue, but as the Mayor's public relations assistant, you have work to do to convince them completely.

  What are the total shortage costs

1.  ABC Company sells 3,177 chairs a year at an average price per chair of $187. The carrying cost per unit is $30.43. The company orders 278 chairs at a time and has a fixed order cost of $64.4 per order. The chairs are sold out before they are rest..

  Value of the stock to investor

If this investor's required rate of return is 11%, then the value of the stock to this investor is

  Organisation to build these processes

Discuss the ways organisations can introduce practices into their organisation to build these processes. Some guidance. The introduction of anything into an organisation requires

  Nikki gs corporations 10-year bonds are currently yielding

nikki gs corporations 10-year bonds are currently yielding a return of 7.00 percent. the expected inflation premium is

  What is the interest portion of the 48th payment

George bought a new car with a 4.1% interest rate for 5 years. The loan is for $35,000. What is the interest portion of the 48th payment?

  Firm weighted average aftertax cost of debt

The company's tax rate is 35 percent. What is the firm's weighted average aftertax cost of debt?

  Evolution of current trade conflicts

Evolution of current trade conflicts between the United States and its trading partners - The European Commission provides similar information

  Calculate the probability of earning a negative return

Calculate the probability of earning a negative return for each fund. (Round "z" value to 2 decimal places and final answer to 4 decimal places.)

  Adk has 30000 15-year 9 annual coupon bonds outstanding if

adk has 30000 15-year 9 annual coupon bonds outstanding. if the bonds currently sell for 111 of par and the firm pays

  Describe one type of captial expendature proposal

What is the difference between a operating and a captial expendature budget? Describe one type of captial expendature proposal.

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