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Lesson 1 of 6

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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What is the Square Root Rule?

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Introduction to Quantitative Finance

6 lessons

Lessons

1
What is Volatility?
2
What is the Square Root Rule?
3
Why Use Lognormal Returns in Finance (Stock Prices)?
4
How to Scale Autocorrelated Returns?
5
Arithmetic Vs. Geometric Stock Returns
6
Extreme Value Theory
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