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Traders by Using the Historical Volatility Assume That the Immediate

question 62

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Traders by using the historical volatility assume that the immediate future will be the same as the recent past, and the historical volatility will equal the forward-looking volatility.


Definitions:

Strict-Liability Torts

Legal claims that impose liability on a party without a finding of fault, such as liability for harm caused by inherently dangerous activities or defective products.

Inherently Dangerous

An activity or condition is inherently dangerous if it naturally has potential to cause harm or damage without additional negligence or intent.

Precautions

Measures taken in advance to prevent harm or secure good outcomes.

Tort

A civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

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