Volatility is the trait of being excitable and unpredictable. Your volatility might ultimately be the thing that makes you unsuitable as a preschool teacher. A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility. Definition: It is a rate at which the price of a security increases or decreases for a given set of returns. Volatility is measured by calculating the standard deviation.
Yield varies between investment period and return period. He had a volatile temper and couldn't have been easy to live with. Food and fuel prices are very volatile in a war situation. Evaporating readily at normal temperatures and pressures. Tending to vary often or widely, as in price: Other equity indices are showing similar declines in volatility. Free content Linking Lookup box. For Everyone Play the Challenge Vocabulary Lists Dictionary Choose Your Words. Capital market volatility may be conceived of a degree to which asset prices tend to fluctuate. And an increase in volatility does not always presage a further increase—the volatility may simply go back down again. Sign up for our newsletter Stay up to date with our latest news and receive new words updates, blog posts, and more. Volatility is widely used by both academics and practitioners as a measure of risk. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings.
The meaning of volatility Video