What does Vega measure in options trading?

The rate of change of option premium concerning the change in volatility The rate of change of stock price concerning the change in volume The rate of change of open interest concerning the change in implied volatility The rate of change of delta concerning the change in time decay

What is the common misconception about volatility in financial markets?

Volatility is the up-down movement of the stock market Volatility is a measure of market sentiment Volatility is the rate of change of option premium Volatility is the difference between the highest and lowest price of a stock in a given period

How is volatility measured in finance?

Standard Deviation Mean Sigma Average

What does standard deviation represent in the context of stock market analysis?

Risk Return Liquidity Momentum

If a stock has a higher volatility compared to another stock, what does it imply?

The stock with higher volatility has riskier price movements The stock with higher volatility is a better investment The stock with higher volatility has a higher average return The stock with higher volatility is more liquid