Volatility
InvestingA statistical measure of the dispersion of returns for a given security or market index — higher volatility means greater risk.
Example
Example: Consider an investor building a $100,000 portfolio. Volatility — a statistical measure of the dispersion of returns for a given security or market index — — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.