Which of the Following Is a Definition of Volatility

question 5

Multiple Choice

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

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Definitions:

Centration

A cognitive limitation in early childhood, where focus is placed on one salient aspect of a situation, neglecting other relevant aspects.

Assimilation

The process by which individuals incorporate new information into existing schemas or frameworks of understanding.

Concrete Operational Stage

A stage in Piaget's theory of cognitive development, where children aged about 7 to 12 years can think logically about concrete events.

Decentering Stage

A cognitive development stage in which children start to understand perspectives and feelings of others, moving beyond self-centered thought.