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:

Receptors

Proteins located on the surface of or within cells, which bind to specific molecules, triggering a physiological response.

Postsynaptic Cell

A neuron or muscle cell that receives signals from a presynaptic neuron at a synapse.

Neuromodulator

Substance that influences the sensitivity of neurons to neurotransmitters but neither strongly stimulates nor strongly inhibits neurons by itself.

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another neuron, muscle cell, or gland cell.