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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.
What else can I help you with?
How are volatility and risk related in an 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.
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 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
What is the significance of beta 1 4 in the context of investment analysis and risk assessment?
In investment analysis and risk assessment, beta 1.4 signifies the level of volatility or risk associated with a particular investment compared to the overall market. A beta of 1.4 means that the investment is 40 more volatile than the market. This information helps investors understand the potential risks and returns of the investment in relation to the market as a whole.
What are the differences between SVXY and VXX and which one would be a better investment option?
SVXY and VXX are both exchange-traded products that track volatility in the stock market, but they do so in opposite ways. SVXY aims to profit from a decrease in volatility, while VXX aims to profit from an increase in volatility. Choosing between SVXY and VXX depends on your investment goals and risk tolerance. If you believe that the market will remain stable or decrease in volatility, SVXY may be a better option. However, if you anticipate increased market volatility, VXX could be a more suitable investment. It is important to carefully consider your investment strategy and consult with a financial advisor before making a decision.
What are the factors on which risk involved in investment depends?
The risk involved in investment depends on several key factors, including market volatility, economic conditions, and the specific characteristics of the investment itself, such as liquidity and credit risk. Additionally, investor behavior and sentiment can influence risk, as can geopolitical events and regulatory changes. Diversification and the time horizon for the investment also play crucial roles in mitigating or amplifying risk. Understanding these factors helps investors make informed decisions and manage potential downsides.
What is considered a risk investment?
Investment risk is determined by the investor. You need to ask the investor what risk they are prepared to take. If they wish to take no risk and want to guarantee their investment then there investment risk has been determined. Therefore it is likely their money will be invested in a building society account which mirrors their attitude to risk. If an investor is more speculative then they may wish to invest in stocks and shares, which has risk and reward depending on performance. So investment risk is determined by the investors attitude to risk.
What is mmvix?
MMVIX, or the Multi-Market Volatility Index, is a financial index that measures the volatility of multiple financial markets. It provides insights into market sentiment and risk, helping investors gauge potential fluctuations in asset prices. By tracking the volatility across different markets, MMVIX serves as a tool for portfolio management and investment strategies.
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...
Does beta measure nondiversifiable risk?
Yes, beta measures the sensitivity of an asset's returns to market movements, representing the nondiversifiable risk (systematic risk) of an investment. A beta of 1 indicates that the asset moves in line with the market, while a beta greater than 1 implies higher volatility, and a beta less than 1 indicates less volatility than the market.
What is Volatility of slot machine?
how high the risk is
