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12) Which of the following statements is true? A. Empirically, the market implied volatility is higher than the market realised volatility. B. Empirically, the market

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12) Which of the following statements is true? A. Empirically, the market implied volatility is higher than the market realised volatility. B. Empirically, the market implied volatility is lower than the market realised volatility. C. Empirically, the market implied volatility is higher (lower) than the market realised volatility during normal (bad) times. D. None of the above

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