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  • Standard Deviation /Volatility of Sales Growth


    Dear all
    I need to take the standard deviation of every realization of annual sales growth over the past 3 years prior to year t for the firm ' i' as sales_volatilityit .
    Assume Sales growth =(Salesgrowtht-Salesgrowtht-1)/Salesgrowtht-1
    My question is how to generate sales_volatilityit ?

    I used the following commands

    **id stands for firm id**

    Code:
    gen sg= d.sales/l.sales
    label var sg "sales growth"
    
    ssc install tsegen
    tsegen sd_sg= rowsd(L(1/3).sg)
    label var sd_sg "sales_volatilityi"
    Are my commands correct? Any help in this regard will be highly helpful
    Last edited by lal mohan kumar; 12 Nov 2019, 00:03.
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