Volatility
The scale and frequency of changes in an investment’s value.
Definition
The scale and frequency of changes in an investment’s value.
Why this concept matters
It indicates how uneven the journey may be without covering every risk.
What to watch
High volatility can cause sharp short-term declines.
Simple example
An asset often moving from +8% to −8% is more volatile than a stable one.
Example currency : United Kingdom (GBP). The reference country controls the example currency.
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