Yield volatility and graph, Mathematics

Assignment Help:

This question has two related parts, (a) and (b).

(a) Use the daily yields in the table below to compute a daily standard deviation of yields. Next annualize the daily standard deviation just calculated first using 365 calendar days, then using 250 trading days in a year. Finally, construct a 4 -day moving average equal weight volatility forecast for each day in the period from Day 5 to Day 24, assuming that the expected value of the daily change in yield is zero. Please show your calculations, including formulas used. Please note: for this question 1) if you use Excel please attach your Excel worksheet to your assignment and 2) keep at least 6 decimal places in both your calculations and your final answers.

(b) Plot in the same graph for each day between Day 5 and Day 24 (inclusive) the computed daily standard deviation of yields and volatility forecast obtained in part (a) above. Please briefly comment on the volatility forecasting method in light of the graph. 

 

 


Related Discussions:- Yield volatility and graph

Toni tiger, Application Practice Answer the following questions. Use Equat...

Application Practice Answer the following questions. Use Equation Editor to write mathematical expressions and equations. First, save this file to your hard drive by selecting Sav

Define tautology and contradiction, Define tautology and contradiction.  ...

Define tautology and contradiction.  Ans: If a compound proposition comprises two atomic propositions as components, after that the truth table for the compound proposition con

Statistics, A researcher is investigating the effectiveness of a new medica...

A researcher is investigating the effectiveness of a new medication for lowering blood pressure for individuals with systolic pressure greater than 140. For this population, systol

Eigenvalues and eigenvectors, If you find nothing out of this rapid review ...

If you find nothing out of this rapid review of linear algebra you should get this section.  Without this section you will not be capable to do any of the differential equations wo

Give the introduction about graphing, Give the  introduction about Graphin...

Give the  introduction about Graphing? Somebody tells you that x = 5 and y = 3. "What does it all mean?!" you shout. Well here's a picture: This picture is what's call

How to find the range of a function, How to Find the range of a function ? ...

How to Find the range of a function ? Sigh. Students ask me this all the time. They don't want an explanation, they want a procedure. "Tell me the steps!" Unfortunately, th

Work Word Problems, Data entry is performed in 2-person teams. Each 2-perso...

Data entry is performed in 2-person teams. Each 2-person team can enter 520 surveys per day. A selection of 7540 surveys must be entered by day''s end. How many total employees, wo

Work in volume problems, Work : It is the last application of integr...

Work : It is the last application of integral which we'll be looking at under this course. In this section we'll be looking at the amount of work which is done through a forc

Construct a venn diagram, In a survey of 85 people this is found that 31 wa...

In a survey of 85 people this is found that 31 want to drink milk 43 like coffee and 39 wish tea.  As well 13 want both milk and tea, 15 like milk & coffee, 20 like tea and coffee

Tests for an ideal index number, Tests for an Ideal Index Number 1. F...

Tests for an Ideal Index Number 1. Factor Reversal Test Factor Reversal Test indicates that when the price index is multiplied along with a quantity index that is factors

Write Your Message!

Captcha
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!

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