At the End of Thursday,the Estimated Volatility of Asset B

question 5

Multiple Choice

At the end of Thursday,the estimated volatility of asset B is 1% per day.During Friday asset B produces a return of zero.An EWMA model with lambda equal to 0.9 is used.What is an estimate of the volatility of asset A at the end of Friday?

• A)0.98%
• B)0.95%
• C)0.92%
• D)0.90%

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Definitions:

Note Payable

A written promise to pay a certain amount of money, often including interest, on a specific date or upon demand.

Debt Settlement

A process in which a debtor negotiates with creditors to pay off a portion of their total debt in exchange for the creditor considering the debt as fully repaid.

Land

An asset representing real estate property that a company owns, which can include natural resources or buildings, used in the business operations or as an investment.

Bond Classifications

Categories of bonds based on issuer type, maturity, credit quality, and other factors influencing risk and return.