Question: True or False. State whether the last sentence is true or false. (a) A certain stock has an monthly volatility of 5% (i.e. (Rt,t+1 month)

True or False. State whether the last sentence is true or false.

(a) A certain stock has an monthly volatility of 5% (i.e. (Rt,t+1 month) = 5%.) The annual volatility of the stock should be (approximately) 60%.

(b) If the (regular) return for a stock is -10%, the log return will be approximately -9.531%.

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