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Question 2 1 pts A trader who is concerned about the volatility of a stock comes and asks for your advice. He doesn't know
Question 2 1 pts A trader who is concerned about the volatility of a stock comes and asks for your advice. He doesn't know whether it is more accurate to use a 95% confidence interval for the standard deviation or for the variance, since both measure volatility (which he dislikes). What advice can you give him? O Both confidence intervals contain exactly the same information. You may have reasons for using either the standard deviation or the variance in your business decision, but there is no statistical reason to prefer one confidence interval over the other. O Use the narrowest, because a tighter confidence interval indicates greater accuracy You must use the standard deviation confidence interval because the standard deviation is the numerator in the coefficient of variation You must use the wider interval because: the more pessimistic you are about volatility, the better decision you will make
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