Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. (i) how do you understand volatility? (ii) how do

(i) How do you understand volatility? (ii) How do we forecast volatility?

60.1K

Verified Solution

Question

Finance

(i) How do you understand volatility? (ii) How do we forecastvolatility?

Answer & Explanation Solved by verified expert
3.7 Ratings (467 Votes)
Volatility can be described as the uncertainty associated with a future outcome For example a stock price may be expected to be 78 in a months time but it can never be predicted with 100 certainty So along with the forecast a range will be provided as the best estimate like the stock price will be 78 with a volatility of 10 It basically says that the price will be within a range of 702 to 858 The following methods are used    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

(i) How do you understand volatility? (ii) How do we forecastvolatility?

Other questions asked by students

Q

Which of the following is FALSE about the molecular structure of DNA? The backbone alternates between deoxyribose...

Biology
Q

Please explain the reactivity and orientation effects observed in each heterocycle. a. Pyridine is less reactive...

Chemistry
Q

i posted this question before , but the answer was totally wrong . i am developing...

Programming
Q

Sex Segregation In this assignment, you will explore socially derived gender norms and the role they play...

Psychology
Q

The Daily Show. A 2010 Pew Research foundation poll indicates that among 1,099 college graduates, 33%...

Basic Math
Q

The new dolphin tank at the city aquarium is in the shape of a rectangular...

Basic Math
Q

Verify the identity csc cot csc 0 cot 0 csc 0 cot 0 11 2...

Basic Math
Q

Write the sentence as an equation. Let the variable x represent the number.Six less than...

Basic Math
Q

Select Audio Inc. Contribution Margin Analysis Sales For the Year Ended December...

Accounting
Q

Question 29 of 29 -/1 = View Policies...

Accounting
Q

which of the following would be a red flag that a company might be manipulating...

Accounting
Q

At 95% confidence, how large a sample should be taken to obtain a margin of...

Finance