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%

Recognize different production methods (small-batch, continuous-process, mass production) and their characteristics.

Understand the concept of competitive advantage and its significance.

Identify how technology impacts transformation processes in organizations.

Comprehend the role of technology in achieving organizational outputs.

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Definitions:

Production Possibilities

The various combinations of goods and services that can be produced from a fixed set of resources.

Specialization

Specialization involves focusing on a narrow area of knowledge or skill, enabling individuals or firms to produce goods or services more efficiently.

Trade

The exchange of goods and services between people or entities, either within an economy or between economies.

Comparative Advantage

The competence of any individual, firm, or national economy to generate a good or perform a service with a lower sacrifice in alternative opportunities compared to others in the market.