Which of the Following Is NOT  Commonly Used as an Estimate

question 41

Multiple Choice

Which of the following is NOT  commonly used as an estimate of a stock's volatility?

• A)an estimate of its standard deviation of returns over a recent period
• B)a time-series trend of historical standard deviations of returns over recent periods
• C)the implied volatility derived from the stock option pricing model
• D)an estimate of its option premium derived from the stock option pricing model

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Definitions:

Reality

The state of things as they actually exist, outside of perception or interpretation.

Filter Bubble

A situation in which an individual's exposure to information on the internet is limited to ideas and perspectives that align with their own, due to algorithmic personalization by search engines and social media platforms.

Social Media

Digital platforms and technologies that enable users to create and share content or participate in social networking, facilitating communication and information sharing globally.

Echo Chambers

Environments, especially in social media or discussion forums, where beliefs are amplified or reinforced by communication within a closed system, limiting exposure to diverse viewpoints.