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 market risk associated with a particular stock. Over the past year, the historical volatility of the stock's monthly returns has been calculated as 4.5%. Based on this information, which of the following statements is most likely accurate?
A
1 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%.