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

Question 2

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%

Correct Answer:

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