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Medium · Mental Math & Estimation · Quant Trader interview question · mental-math, volatility, taylor-series, calculus, risk-management
In quantitative finance, converting Variance to Standard Deviation (Volatility) is a daily task. Suppose you are analyzing a portfolio with a calculated daily variance of 50. To find the daily volatility, you must compute the square root of 50. Using linear approximation techniques, estimate the value of $\sqrt{50}$ to two decimal places.