Question

How is volatility calculated??​

Answer 1

Answer:

Volatility can be measured by comparing current or expected returns against the stock or market's mean (average), and typically represents a large positive or negative change. ... Calculated by the Chicago Board Options Exchange (CBOE), it's a measure of the market's expected volatility through S&P 500 index options.

Answer 2

Volatility is often calculated using variance and standard deviation.

Explanation:

Volatility is often calculated using variance and standard deviation. The standard deviation is the square root of the variance. For simplicity, let's assume we have monthly stock closing prices of $1 through $10. For example, month one is $1, month two is $2, and so on.