Volatility
Risk Management
Definition
A measure of how much an asset's price fluctuates over time, with higher volatility indicating greater price swings and potentially higher risk and return potential.
Key Points
- Measures price fluctuation magnitude
- Higher volatility = higher risk and potential return
- VIX measures S&P 500 implied volatility
Quick Info
Category
Risk Management
Related Topics
vix volatility index
beta
market correction
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