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16.A stock price is $20. It has an expected return of 12% and a volatility of 25%. What is the standard deviation of the change in the price in one day. (For this question assume that there are 365 days in the year.)
A.$0.20
B.$0.23
C.$0.26
D.$0.29
Answer: C
The standard deviation of the change in one day is
The standard deviation of the change in one day is
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015