Suppose that a stock's "vol" is 18%. What is periodic vol for a six-month period? Plug...

Suppose that a stock's "vol" is 18%. What is periodic vol for a six-month period? Plug in a raw number rounded to 4 decimals (for example: for 5%, plug in: .0500).

Solutions

Expert Solution

Assuming the vol given is annualised volatility

Periodic vol=Annualised vol/sqrt(12)*sqrt(6)=18%/sqrt(12)*sqrt(6)=0.1273

jeff jeffy answered 2 years ago

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