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12/24/2007

Share-Market Definitions 08


Volatility

Category: General
Posted by: admin

The relative rate at which the price of a security moves up and down.
Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility.