Annualized volatility definition
Annualized volatility means the standard deviation of each Index’s arithmetic daily returns scaled for a one-year period based on the period from January 3, 2000 through March 31, 2010.
Examples of Annualized volatility in a sentence
Annualized volatility Daily volatility = Rs.300 = 15% 250 = 15 = 0.9487% Possible gains and losses at 90% confidence level can be measured as: VaR = 100 × 300 (1 + 1.65 × 0.009487) = Rs.30,469.61 or VaR = 100 × 300 (1 – 1.65 × 0.009487) = Rs.29,530.39 So for total investment of Rs.30,000, Mr. Pranoy faces a potential gain or loss of Rs.469.61 each day.