Volatility Calculation

What is the first step to calculate volatility using Excel?

• Calculate the average

• Calculate the deviation

• Calculate the square root of variance

• Download the historical closing prices

Which function in Excel is used to calculate the standard deviation of daily returns?

• AVERAGE

• SUM

• STDEV

• LN

What is the approximate equation to calculate daily returns?

• Return = (Ending Price / Beginning Price) - 1

• Return = LN (Ending Price / Beginning Price)

• Return = SQRT (Ending Price / Beginning Price)

• Return = (Ending Price - Beginning Price) / Beginning Price

How can you download historical closing prices from NSE India website?

• Click on historical data and select the search option

• Click on download file in CSV format

• Fill in the required details and hit 'Get Data'

• All of the above

What is the purpose of calculating standard deviation manually in the previous chapter?

• To show the mechanics behind the calculation

• To demonstrate the use of Excel functions

• To compare with NSE's calculation

• To calculate annual volatility

What is the daily volatility of WIPRO calculated using Excel?

• 0.0147%

• 1.47%

• 23.33%

• 25.5%

How can you calculate the daily log returns of WIPRO in Excel?

• Use the function SQRT

• Use the function SUM

• Use the function LN

• Use the function AVERAGE

What is the formula to convert annual volatility to daily volatility?

• Divide the annual volatility by the square root of time

• Multiply the annual volatility by the square root of time

• Multiply the annual volatility by the daily volatility

• Divide the annual volatility by the daily volatility

What is the time value used to calculate WIPRO's annual volatility?

• 365

• 252

• 30

• 12

What is the purpose of using the STDEV function in Excel?

• To calculate the average

• To calculate the deviation

• To calculate the variance

• To calculate the standard deviation