GRE Prep Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Sep 28Live Online Class with Top GRE Expert Mike Butville
08:00 PM EDT
-10:00 PM EDT
Top scores are possible when you enroll in a powerful GRE course, taught live online + 6 months access to TTP GRE OnDemand video courses included! Class starts Mon/Wed Sept. 28, 2026 - Dec. 9, 2026, 8:00pm-10:00pm EST
A certain financial analyst defines the volatility of a stock during
[#permalink]
05 Apr 2022, 08:47
05 Apr 2022, 08:47
Expert Reply
1
Bookmarks
00:00
Question Stats:
33% (01:49) correct
66% (02:00) wrong based on 3 sessions
Hide Show timer Statistics
A certain financial analyst defines the “volatility” of a stock during a given week to be the result of the following procedure: find the absolute value of the difference in the stock's closing price for each pair of consecutive days in the week and then find the average (arithmetic mean) of these 4 values. What is the volatility of Stock X during the week shown in the table?
A. 0.50
B. 1.80
C. 2.00
D. 2.25
E. 2.50
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2932
Given Kudos: 1259
GPA: 3.39
Re: A certain financial analyst defines the volatility of a stock during
[#permalink]
14 Apr 2022, 02:19
14 Apr 2022, 02:19
2
Expert Reply
\(V = \frac{|19-21|+|22-19|+|24.5-22|+|23-24.5|}{4}\)
\(V = \frac{2+3+2.5+1.5}{4 }= \frac{9}{4} =2.25\)
Answer: D
\(V = \frac{2+3+2.5+1.5}{4 }= \frac{9}{4} =2.25\)
Answer: D
Retired Moderator
Joined: 10 Apr 2015
Posts: 6218
Given Kudos: 136
Re: A certain financial analyst defines the volatility of a stock during
[#permalink]
14 Apr 2022, 05:09
14 Apr 2022, 05:09
1
Carcass wrote:
A certain financial analyst defines the “volatility” of a stock during a given week to be the result of the following procedure: find the absolute value of the difference in the stock's closing price for each pair of consecutive days in the week and then find the average (arithmetic mean) of these 4 values. What is the volatility of Stock X during the week shown in the table?
A. 0.50
B. 1.80
C. 2.00
D. 2.25
E. 2.50
Absolute difference from Monday to Tuesday = |19 - 21| = 2
Absolute difference from Tuesday to Wednesday = |22 - 19| = 3
Absolute difference from Wednesday to Thursday = |24.5 - 22| = 2.5
Absolute difference from Thursday to Friday = |23 - 24.5| = 1.5
Average of the absolute differences = (2 +3 + 2.5 + 1.5)/4 = 9/4 = 2.25
Answer: D
