volatility
Definition
The relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility.
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Related Terms
beta, relative volatility, average weighted maturity, country risk, dollar cost averaging, standard deviation, thin market, vega, implied volatility, kappa, lambda, market volatility index
'volatility
' appears in the definitions of these terms on BusinessDictionary.comstrangle, vapor pressure, Black Scholes option-pricing model, collar agreement, forward freight agreement, and
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