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:

Received Wisdom

Received wisdom refers to ideas, opinions, or beliefs that are widely accepted as true without being critically examined.

Empirical Evidence

Information acquired by observation or experimentation that is used to support or refute a hypothesis or theory.

Personal Experiences

Unique events or occurrences that an individual goes through in their life, shaping their perceptions and understanding of the world.

Psychobabble

A term used pejoratively to describe language that uses psychological terminology in a vague, buzzword-like manner, often to sound impressive or authoritative without offering genuine insight.