The volatility of a stock is 18% per year. What is the volatility per month?
A) 1.5%
B) 3.0%
C) 5.2%
D) None of the above

Question

Quizplus · Accepted Answer

To find the volatility per month, we need to convert the annual volatility to monthly volatility. We can do this by dividing the annual volatility by the square root of 12 (since there are 12 months in a year). So, monthly volatility = 18% / sqrt(12) = 5.2%. Therefore, the answer is C) 5.2%.

The Volatility of a Stock Is 18% Per Year