Financial Risk Manager Part 1
Get started today
Ultimate access to all questions.
Comments
Loading comments...
Ultimate access to all questions.
A financial analyst is concerned about the risk in the stock market pertaining to a specific stock. Using the past 12 months' return data for this stock, it has been determined that the historical volatility of the monthly returns is 4.5%. Based on this information, which of the following statements is most likely to be correct?
A
The implied volatility of the annual returns is 15.6%.
B
The implied volatility of the annual returns is 54.0%.
C
The volatility of the annual returns is 15.6%.
D
The volatility of the annual returns is 54.0%