Which of the Following Is Not Commonly Used as an Estimate

question 27

Multiple Choice

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

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

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Definitions:

Ethical Standards

Principles that guide behaviors and practices to distinguish between right and wrong, often used in professional and research contexts.

Attitude

A psychological construct representing an individual's positive or negative evaluation of people, objects, or ideas.

Components

The constituent parts or elements that make up a system or compound.

Skills

The ability to perform tasks well, usually gained through practice and learning.