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Square roots on a desk · Part 3 of 3

A trader needs square roots quickly to move between variances, volatilities and time horizons. Choose the closest value in each part.

Annual volatility is 32%. Using 252 trading days, what is the daily volatility, closest to?

  1. A2.0%
  2. B0.13%, the annual figure divided by the number of days
  3. C1.6%
  4. D2.5%, from dividing by the square root of 164

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Square roots on a desk, part 3 of 3 · QuantMax