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FinanceQ&A LibraryI have a question and I literally don't know where to begin. I am provided with a table of stock prices of Microsoft from August 13 to November 1, 2001. It includes the following headings: Date, Open, High, Low, Close, and Volume. I am supposed to estimate the volatility parameter, sigma, using the "standard estimator of volatility". I have that the formula is sigma=S times the square root of 252. I also have the formula for S. As I said, I don't know where to start or what I need to do to solve the problem. Thanks!Question

I have a question and I literally don't know where to begin.

I am provided with a table of stock prices of Microsoft from August 13 to November 1, 2001. It includes the following headings: Date, Open, High, Low, Close, and Volume.

I am supposed to estimate the volatility parameter, sigma, using the "standard estimator of volatility". I have that the formula is sigma=S times the square root of 252. I also have the formula for S. As I said, I don't know where to start or what I need to do to solve the problem. Thanks!

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