That is the daily volatility of the stock

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Question - A stock has an average return of 0%. On an average day it moves 1% in absolute value, the average up move is 1% and the average down move is -1%. If returns are normal distributed what is the daily volatility of the stock?

a) 0.00%

b) 1.00%

c) 1.25%

d) 2.00%

Reference no: EM133177558

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