Volatility in Finance: What It Means and How It Applies to Stocks Understanding Volatility Volatility refers to the degree of variation in the returns of a security or market index. It’s a statistical measure commonly calculated using either standard deviation or variance. Generally, greater volatility signals higher risk, as prices can […]
Understand Your Risk Tolerance Risk tolerance refers to the risk you’re ready to take when investing in stocks, bonds, and funds. If you’ve got high patience for risk, you’re secure with the probability of losing money in trade for the likelihood of achieving higher gains. This makes you a hostile investor. […]