Volatility Standard Deviation Online Help Essay

533 words - 3 pages

Volatility standard deviation online help.
Introduction to volatility standard deviation online help:
Let us see about volatility standard deviation online help. Volatility deviation is the statistics term that provides a better indication of volatility. It estimates how widely values are discrete from the standard. The distribution is the distinction among the definite value and the average value. The superior differentiation among the closing prices and the average price, the superior standard deviation will be and the superior the volatility. Earlier is closing prices are to the average price, the junior the standard deviation and the junior the volatility.
Online help for volatility standard deviation:
Online help will facilitate to explain the ...view middle of the document...

Examples for volatility:
Let us see some example problems for volatility.
Example 1:
Determine the volatility standard deviation.
Price of closing Mean Deviation
109.00 112.30 -3.30
103.06 112.30 -9.24
102.75 112.30 -9.55
108.00 112.30 -4.30
107.56 112.30 -4.74
105.25 112.30 -7.05
107.69 112.30 -4.62
108.63 112.30 -3.68
107.00 112.30 -5.30
109.00 112.30 -3.30
110.00 112.30 -2.30
112.75 112.30 0.45
113.50 112.30 1.20
114.25 112.30 1.95
115.25 112.30 2.95
121.50 112.30 9.20
126.88 112.30 14.57
122.50 112.30 10.20
119.00 112.30 6.70
122.50 112.30 10.20
Total price= 2246.06 Total = 0.04
Description of calculating volatility:
1. Determine the simple average for the closing price.
2. Separate each period; subtract the average closing price from the actual closing price. This is named as deviation.
3. Utilize the following formula determine the volatility.
Formula for volatility = standard deviation of closing price [for n periods] / average closing price [for n periods].
Hence, volatility = 0.04 / 112.30
= 0.00036.
Example 2:
Determine the volatility standard deviation.

Price of closing Mean Deviation
102.35 121.74 -19.39
107.67 121.74 -14.07
115.69 121.74 -6.05
154.36 121.74 32.62
125.8 121.74 4.06
Total = 605.87 -2.83
Description of calculating volatility:
1. Determine the simple average for the closing price.
2. Separate every period; subtract the average closing price from the actual closing price. This is named as deviation.
3. Utilize the described formula for determine the volatility.
Formula for volatility = standard deviation of closing price [for n periods] / average closing price [for n periods].
Since, volatility = -2.83 / 121.74
= -0.0232.

Other Essays Like Volatility Standard Deviation Online Help

Sharp Ratio Essay

541 words - 3 pages Soundsleep Assignment 2 Subject: Sound sheep funds ranking Per your request, I have compared the five funds based on the sharpe ratio, and Jensen alpha calculations. I also compared the result to the earlier analysis done based on average return, standard deviation and beta. Sharpe ratio, measures investment performance of the portfolio compared to risk taken. It’s most appropriate to use when evaluating diversified portfolios

Strategic Capital Management, Essay

1257 words - 6 pages stock price was quit volatility and sensitive to movements in the stock market. IV. Return and risk | Average return in 1989 | Average return in 1990 | Average standard deviation in 1989 | Average standard deviation in 1990 | SP500 | 2.358% | -0.15% | 3.5891% | 5.296% | Cal R.E.I.T | -4.71% | 0.18% | 11.52% | 5.70% | Brown Group | -0.66% | -0.68% | 5.39% | 10.51% | Table1 (Information from appendix 1) a) As the table 1 show above

Hedgefund Intro

953 words - 4 pages managers will have incentive to increase the - any option is positively related to the volatility of fund moneyness – In, out or at track - Index/ETF/DIY AUM: asset under management Pure asset gatherers: managers who want to increase AUM (like find more people to invest in the fund) Closet indexes: managers who track the index only (means they act act and say that they will help to invest but actually just track index) Factors

Diversification in Stock Portfolios

559 words - 3 pages Diversification in Stock Portfolios Assignment # 3 Presented To Dr. James Glenn May 15, 2011 Financial Management- FIN 534-5016 Strayer University Introduction The expected return on stocks is established as the computation for the return of a security based on the average pay off expected where as the volatility of stocks is the standard deviation of a return. The relationship between risk and return is examined by historical

Case 2: Financial Management

1238 words - 5 pages investment but standard deviation may understate the actual risk or overstate risk. Although they are similar, they differ as standard deviation is an absolute measure of risk while coefficient of variation is of a relative measure. Also, standard deviation measure how far the actual risk return is likely to deviate from the expected return while coefficient of variation help measures the risk per unit of return and identifies an investment with higher

Long Run Forecast of the Covariance Matrix

5165 words - 21 pages future work in this area. 2. Literature Review 3.5. Understanding and forecasting volatility Sinclair (2011) mentions that the standard mathematical definition of volatility is “the square root of variance” as can be expressed as below: s2=1Ni=1N(xi-x)2 Equation 1 In the above equation, xiis the logarithmic return; xis the mean return of the sample; and N is the sample size. While the above equation is technically the definition of

Strategic Management

1343 words - 6 pages strategy | case study | Data collection method | From Portfolio Manager | Sample technique | Simple random sampling | Sample size | 30 | Data analysis techniques | Descriptive statistics (mean, standard deviation), Frequency distribution, regression analysis | * We initiated our research through the gathering of 30 recent stock portfolios. Statistical Techniques Used: During the course of research we have used the following

Options, Futures and Risk Management

2159 words - 9 pages per contract is $10*5,000 = $50,000, where $10 is the index multiplier and 5,000 is the exercise price of the option. So, the number of contacts we should buy is $150,000,000 / 50,000 = 3,000. 3. The cost of buying options * The total costs of buying options are 3,000 * $29.1 = 87,300 * Estimate historical volatility First, use standard deviation function in excel to calculate σ, which is the standard deviation of daily returns of

Fins 3616 Ch6

2331 words - 10 pages volatility and standard deviations: a. A daily standard deviation of 0.742% measured over 252 trading days implies T = (0.742%)( 252) = 11.78% per year. b. +2 : e2(+0.1178) = e+0.2356 = 1.2657 (A$1.4/$)(1.2657) = A$1.7719/$ –2 : e2(–0.1178) = e–0.2356 = 0.7901 (A$1.4/$)(0.7901) = A$1.1061/$ c. +2 : r = ln((A$1.7719/$)/(A$1.4/$)) = ln(1.2657) = +0.2356 0.1178/year –2 : r = ln((A$1.1061/$)/(A$1.4/$)) = ln(0.7901) = –0.2356 0.1178/year Alternatively

Statistics

1331 words - 6 pages . Question(s): 1. Your gender: a. Female b. Male 2. How many times you purchase things online monthly? Method: Descriptive statistics: 1). For the gender, we will calculate the proportion of male and female and use a pie chart to show the breakdown of men and women 2). For the times of purchasing online, we will calculate a. Mean, median and mode b. Variance and Standard Deviation c. Min and Max

Supply Chain Management

5211 words - 21 pages forecasts. Answer: False Difficulty: Moderate 13. Aggregate forecasts are usually more accurate than disaggregate forecasts, as they tend to have a smaller standard deviation of error relative to the mean. Answer: True Difficulty: Moderate 14. In general, the further up the supply chain a company is (or the further they are from the consumer), the smaller the distortion of information they receive. Answer

Related Papers

Quantitative Methods Essay

1944 words - 8 pages times greater than y. By terms of wins, all x expected values surpass y values. On the other hand, in terms of loss, y doubles the probability of x (-200, -100). To summarize, with the analysis of that scenario, investors can choose the one that presents better chances to the achievement of their desired outcome. 2.0 Standard Deviation     To deepen the analysis of the stocks, we decided to study the volatility of the scenario. This

Partners Healthcare Case Solution Essay

1335 words - 6 pages Standard Deviation Consider the hospital that is fully invested in the LTP with its current standard deviation and wishes to maintain this level of risk. How much does the introduction of real assets help them, if at all? The standard deviation of the baseline LTP is 12.02% and the expected return is 11.65%. Exhibit 8 shows that with the introduction of real assets there is no portfolio that now has such a high volatility as the highest

Dividend Policy Essay

2459 words - 10 pages volatility and dividend yield was highly correlated and so was payout ratio. In specific, he suggested that a 1% increase in dividend yield would lead to a drop of 2.5% in the annual standard deviation of stock price move. But, according to the ‘dividend effect’, and the empirical findings indicate that as the higher growth stocks, the higher dividend payout are usually negatively associated with higher P/E ratios (Friend and Puckett, 1964). In

Finance Analysis

2101 words - 9 pages calculated as the square root of variance. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment’s volatility and is used by investors as a gauge for the amount of expected volatility. Standard deviation is a statistical measurement that sheds light on historical volatility. For example, a volatile stock will have a high standard deviation while the deviation of a stable blue chip