533 words - 3 pages

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 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.

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