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The risk of an investment can be measured by observing how volatile the return of that investment has historically been over a period of time.
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How are volatility and risk related in investment?
The risk of an investment can be measured by observing how volatile the return of that investment has historically been over a period of time.
Return on investment and safety of investment?
Return on investment is the amount of profit on the invested money after deducting taxes, safety of investment is the risk factor involved in the investment. Such as risk is high safety of investment is less.
What is implied volatility for stocks?
The implied volatility is the volatility that gives the current option price (given the risk free rate, dividend, time to maturity and strike price). The related link contains a spreadsheet to help you calculate implied volatility in VBA
Why people invest where their is more risk?
Return on investment is directly related to risk of investment--the riskier an investment is, the more you have to pay people for making it.
What is Volatility of slot machine?
how high the risk is
What is considered a risk investment?
A risk investment typically refers to any investment that has a higher level of uncertainty or volatility, which may result in potentially higher returns or losses. Examples can include investing in stocks of startup companies, investing in commodities, or investing in emerging markets. It is important to note that risk investments may not be suitable for everyone and should be approached with caution.
What are the Questions asked by customer related to investment?
Some common questions are: # Risk profile - Chances of losing the investment # Returns on Investment # Investment Tenure # Reputation of the investment house # etc...
What is the best way to deal with volatility and get the best return on your investment?
Use diversification
How can you measure volatility using beta?
You can use Beta to measure market volatility because of beta is the elasticity of a stock change as a result of a change in the market. That is, Beta of a sotck is found by comparing the senstivity of a stock's return to the fluctuations in the market.Beta is found by dividing the product of the covwariances of the stock and market retun by the variance of the market.The bench marks of betas are as followed:a risk free investment such as a Tbill (that is guaranteed a return) will have a beta of 0.A portfolio with risk equivalent to the market has a beta of 1.Given those two bench mark, you can gauge at the volatility of the stock/investment by comparing its beta with those two extremes.
How can you get a stock investment section going that deals with volatility?
There are five volatility indexes that are found on the CBOE.org web page. (CBOE = Chicago Board Options Exchange).
What does volatility mean in finance?
A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return from now to the expiration of the option. There are volatility indexes, such as the CBOE Volatility Index, VIX.
What risk is measured by beta?
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
