An increase in the VIX is associated with
A)increased stock returns
B)increased stock market volatility
C)increased interest rates
D)increased market complacency

Question

Quizplus · Accepted Answer

The VIX, or Volatility Index, measures the market's expectation of volatility over the near term. An increase in the VIX indicates that investors expect higher stock market volatility, not necessarily higher returns, interest rates, or market complacency.

An Increase in the VIX Is Associated with