Predicting equity volatility using Implied Volatilty

Predicting actual volatility using Implied Volatility"In this paper the authors examine460 of the S&P 500 firms to demonstrate that: (1) implied volatility is a better forecaster of realized volatility than historic volatility or GARCH models and (2) the information content of implied volatility significantly decreases with liquidity."Both points are important. The first says that markets are