Investing Questions and Answers

How to figure drift μ and volatility σ of the stock price from historical stock price?

how to calculate drift μ and volatility σ of the stock price from historical stock price?please state out the formula.gratefulness.


Answers: standard deviation:
suppose you have these returns
X X-average =Y Y^2
2001 3.51 (3.51- 7.384) 14.98
2002 14.12 ... ..
2003 18.72
2004 -14.50
2005 -26.03
2006 36.92
2007 23.64
2008 -7.17
2009 6.39
2010 18.24

Variance = Sum( Y^2)/(n-1) N=10
standard deviation=square root (variance)
this is also call the risk of an asset or portfolio of assets
the answer for this question is 19%, expect is 7.384

Is any one know the tariff rate in reliance dmat account for trading?




Answers: Ask reliance but take my advise it is negotiable. If you have volume trading PLEASE DO NEGOTIATE.

Which bank is good for opening the d mat account?




Answers: Whats a d mat account?
Raja There are many options.

Do check for the charges - maintenance as well as transaction charges. Also it varies which Depository is giving you other facilities like accepting transaction slips through fax or email also.

Moreover charges are negotiable so do negotiate if you have a choice or volume is good.

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