Question
The volatility of a stock is defined to be the standard deviation of the stock's return over a certain length of time. A sample of
The volatility of a stock is defined to be the standard deviation of the stock's return over a certain length of time. A sample of 12 consecutive monthly returns for stock ABC is provided below. The returns are provided as percentages.
1-1.52.9-0.91.30.32.6-0.8-1.40.5-13
Use the1-Var Statscalculator function and this sample information to estimate the monthly volatility for the stock . In other words, find the standard deviation for the sample of monthly returns.
Multiply this number by 12 to find the annual volatility of the stock.
Express your answer as a percentage. Round your answer to two decimal places.
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