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

Expert Solution

Colby Messinger answered 2 years ago

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