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The annualized volatility of a stock basing on data in past 3 months is 46.042%. The...

The annualized volatility of a stock basing on data in past 3 months is 46.042%.

The annualized volatility of a stock basing on data in past 1 year is 28.38%.

Discuss and explain the difference between 2 results.

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Answer #1

The annualized volatility over the medium-term (1 year) has been 28.38%.

However, the annualized volatility over the short-term (3 months) has been 46.042%.

This indicates that the stock's volatility has been much higher over the past 3 months than it has been over the past 1 year. This is in line with the overall volatility in global markets, which have been highly volatile over the past 3 months due to the uncertainty of the global economy due to COVID-19.

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