Statistical Foundations: Predicting VolatilityFollowing are the major steps we take to estimate volatility, using the S&P 500 Index:
- Let's lo...

# What is Volatility?

The simple answer is the standard deviation of periodic returns. This video takes some sample data for closing prices of a stock and demonstrates how volatility is calculated in Excel.

In finance, such as for price series, usually log returns are used, where log is the natural logarithm.

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