You are to estimate a nondividend-paying stocks annualized volatility using its prices in the past nine months.

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You are to estimate a nondividend-paying stock’s annualized volatility using its prices in the past nine months.

Month 1 23 1678 5 6 9 Stock Price ($/share) 80 64 80 64 80 100 80 64 80

Calculate the historical volatility for this stock over the period.

(A) 83%

(B) 77%

(C) 24%

(D) 22%

(E) 20%

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