The Volatility of a Stock's Price Estimated from the Stock's

question 2

Multiple Choice

The volatility of a stock's price estimated from the stock's option is called ________.

• A) market volatility
• B) estimated variance
• C) a volatility skew
• D) implied standard deviation
• E) rho factor

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Definitions:

Standard Score

A statistical measure that expresses an individual's score relative to an average or mean score of a standardized test, often using a known standard deviation to scale the results.

WRAT

The Wide Range Achievement Test is a standardized test that assesses reading, spelling, and arithmetic skills.

Cognitive Ability Test

An assessment designed to measure mental capabilities such as logic, reasoning, and problem-solving.

No Child Left Behind Act

A U.S. Act of Congress that reauthorized the Elementary and Secondary Education Act; it included measures designed to close the achievement gap with accountability, flexibility, and choice, so that no child is left behind.