Math Problem Statement

On which day did the stock exhibit the greatest volatility, defined as the largest difference between the high and low prices?

Solution

The question asks which day exhibited the greatest volatility, defined as the largest difference between the high and low prices. Let's analyze the stock price movements over the week based on the candlestick chart provided:

  • Monday: The price ranges from approximately $97.5 to $110.5, giving a difference of $13.
  • Tuesday: The range is from about $101.5 to $106, giving a difference of $4.5.
  • Wednesday: The range is from about $99 to $103.5, giving a difference of $4.5.
  • Thursday: The range is from about $102 to $110.5, giving a difference of $8.5.
  • Friday: The range is from about $103.5 to $112.5, giving a difference of $9.

The day with the largest difference between the high and low prices is Monday with a price difference of $13, indicating the greatest volatility.

The correct answer is Monday.

Do you want more details or have any questions? Here are 5 related questions:

  1. How is volatility typically measured in financial markets?
  2. What can cause high volatility in stock prices?
  3. How do candlestick charts help in analyzing stock movements?
  4. What other indicators can you use to assess stock volatility?
  5. Why might Monday have experienced the highest volatility in this case?

Tip: Candlestick charts visually represent price movements and provide insights into market sentiment, with the length of the candlestick indicating volatility.

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Math Problem Analysis

Mathematical Concepts

Stock Analysis
Volatility
Range Calculation

Formulas

Volatility = High Price - Low Price

Theorems

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Suitable Grade Level

Grades 9-12