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  3. (i) how do you understand volatility? (ii) how do

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

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Finance

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

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

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