Why one week of risk is so noisy

Derive the noise of a variance estimate from squared shocks, averaging, chi-square shapes and kurtosis—then connect measurement to risk forecasts.

A simulated teaching example with formulas, symbol definitions and paced Zon–Coach conversation. Separate measurement uncertainty from forecast bias and information leakage.

Squared-return averages approach a true normalized variance of one while a one-standard-deviation guide narrows.

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