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Calculate the historical volatility of the NASDAQ index over the last year by computing the...

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Finance

Calculate the historical volatility of the NASDAQ index over the last year by computing the standard deviation of historical returns and multiplying by sqrt(252). (The number of trading days in a year is typically taken to be 252.) Use your volatility estimate to simulate the risk each month in a 12 monthfutures position. What is the cumulative maximum loss of a long or a short position in each of the months, assuming the position is held until maturity?

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