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%
C
The variance rate is 0.9×0.022+0.1×0.032 = 0.00045 . The volatility per day is the square root of this or 2.12%.
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A company is part of a keiretsu in Japan. Its leaders are worried about the company's financial viability and ask for help from other members of the keiretsu. Why would other participants of the keiretsu feel the need to aid the failing company?
a. Members of the keiretsu will not feel obligated to help, as they will have members of the company fend for themselves. b. Members of the keiretsu are seen as family, which commands attention and allegiance. c. Members of the keiretsu are legally obligated to aid when members are in need. d. Keiretsu are companies that make a profit from lending money.
Accounting for stated value common stock is identical to accounting for par value stock
Indicate whether the statement is true or false