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.com
 



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