Financial Risk Manager Part 1

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Answer: 1.6

The one-standard-deviation move is calculated by multiplying the asset price by the daily volatility percentage. **Calculation:** - Asset price = $80 - Daily volatility = 2% = 0.02 - One-standard-deviation move = $80 × 0.02 = $1.6 This represents the expected price movement (up or down) that would occur approximately 68% of the time under normal distribution assumptions for a one-day period.

Author: Nikitesh Somanthe

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Answer: 1.6

Author: Nikitesh Somanthe

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The price of an asset is `$80`, and its daily volatility is 2%. Determine the one-standard-deviation move in the asset's price over a one-day period.

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NNikitesh

Last updated: February 2, 2026 at 10:22

1.6

Financial Risk Manager Part 1

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The price of an asset is $80, and its daily volatility is 2%. Determine the one-standard-deviation move in the asset's price over a one-day period.

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The price of an asset is `$80`, and its daily volatility is 2%. Determine the one-standard-deviation move in the asset's price over a one-day period.