Which of the Following Is Not Commonly Used as the Estimate

question 69

Multiple Choice

Which of the following is not commonly used as the 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:

Virtue Ethics

An ethical theory that emphasizes virtues of mind, character, and sense of honesty as the basis for morality.

Ethics of Care

A normative ethical theory that emphasizes interpersonal relationships and compassion as foundational to moral action.

Psychological Egoism

The theory that suggests that all human actions are motivated by self-interest, even in what seem to be acts of altruism.

Altruism

The selfless concern for the well-being of others, often leading to acts of kindness without expectation of reward.