n NISM Certifications
VII NISM Series VII
Medium

The daily volatility of the market index (CNX Nifty or S&P BSE Sensex) computed as at the end of the previous trading day is known as ______.

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

Options

  1. A

    VaR Margin

  2. B

    Scrip sigma

  3. C

    Index VaR

  4. Index sigma

    Correct answer

Why this is the answer

Index sigma represents the daily volatility of the market index calculated using the exponentially weighted moving average method on daily returns.

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NISM Series VII Mock Test 2