What is valitility?

Answer 1

Volatility refers to the degree of variation in the price of a financial asset over time, often measured by the standard deviation of returns. High volatility indicates significant price fluctuations, while low volatility suggests more stable prices. It's commonly associated with risk in investments; assets with higher volatility can offer greater potential returns but also come with increased uncertainty. In financial markets, volatility can be influenced by factors such as economic indicators, market sentiment, and geopolitical events.