n NISM Certifications
VII NISM Series VII
Medium

Scrip sigma means the daily volatility of the market index such as BSE Sensex or Nifty 50. State True or False.

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

Scrip sigma refers to the volatility of a specific security as of the previous trading day. It is calculated using the exponentially weighted moving average (EWMA) method applied to daily returns, similar to volatility calculations in the derivatives market.

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