Which of the following is a definition of volatility
A) The standard deviation of the return, measured with continuous compounding, in one year
B) The variance of the return, measured with continuous compounding, in one year
C) The standard deviation of the stock price in one year
D) The variance of the stock price in one year

Question

Quizplus · Accepted Answer

Volatility when multiplied by the square root of F1F1F1S1F1F1F10t is the standard deviation of the return in a short period of time of length F1F1F1S1F1F1F10t.It is also the standard deviation of the continuously compounded return in one year.

Which of the Following Is a Definition of Volatility