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What is the expected value for number of car sales each day and the standard deviation of the sales each day?
Sales Probability
0 0.14
1 0.19
2 0.23
3 0.2
4 0.14
5 .01
How do you come to the conclusion to this problem?
Finance 310 - calculate a standard deviation for each maturity. These are estimates of daily log-return volatilities. Scale them up to an annual basis (remembering that there are about 250 trading days/year).
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