At the End of Thursday,the Estimated Volatility of Asset a Is

question 12

Multiple Choice

At the end of Thursday,the estimated volatility of asset A is 2% per day.During Friday asset A produces a return of 3%.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) 2.08%
• B) 2.10%
• C) 2.12%
• D) 2.14%

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Definitions:

Price Discrimination

The practice of selling the same product to different customers at different prices, typically based on factors like quantity purchased, customer demographic, or market location.

Robinson-Patman Act

A United States federal law aimed at preventing anticompetitive practices by producers, specifically prohibiting price discrimination among different purchasers of the same product, when the effect may harm competition.

Predatory Pricing

A strategy where a business sells products or services at a loss or extremely low prices to eliminate competition and gain market share.

Clayton Act

A piece of antitrust legislation in the United States, passed in 1914, aimed at promoting competition among businesses by prohibiting certain practices that restrict competition.