3,1. Suppose that the price of an asset at close of trading yesterday was $350 and...

3,1. Suppose that the price of an asset at close of trading yesterday was $350 and its volatility was estimated as 1.4Voper day. The price at the close of trading today is $347. Update the volatility estimate using
(a) The EWMA model with A = 0.95,
(b) The GARCFI(1,1) model with tir = 0.000003, o= 0.05, and B = Q.<15. (5)
3.2 The number of visitors to websites follows the power law in equation (10.1) with q = 2.
Suppose that 1 .5% of sites get 550 or more visitors per day. What percentage of sites get
(a) 1,500 more visitors per day
(b) 2,500 or more visitors per day

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Expert Solution

Colby Messinger answered 1 year ago

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