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:

CEOs

Chief Executive Officers; the highest-ranking individuals in a company or organization, responsible for making major corporate decisions and managing overall operations and resources.

Costing Scheme

A method for determining the expenses associated with a project or activity, taking into account direct and indirect costs.

Needs Analysis

A process used to determine the gaps between current capabilities and desired outcomes, often used to identify training and development requirements.

Developmental Costs

The expenses incurred during the creation and implementation of a project, including research, design, and testing.