Volatility is the amount by which the price of a security swings up and down. If the price of a security moves up and down frequently, it has_____ volatility. Fill in the blank with the most suitable word.

Question

Quizplus · Accepted Answer

If the price of a security moves up and down rapidly over a short time, it has high volatility. However, if the price almost never changes, the security has low volatility.
Volatility is a measure of risk. The more volatile the price of a security is, the riskier the security is. Understanding the volatility of a security can help maximize returns and minimize losses from investments.

Volatility Is the Amount by Which the Price of a Security