Question

Do you believe that stock prices are too volatile? Explain.

Answer 1

There is more volatility in stock prices as comared to other assets such as bonds and gold, but i do not belive that there is too much volatility.Stocks are riskier and witness higher relative volatility with the potential of higher returns but volatility is also normal and within the acceptable levels if we do average analysis over period of time.There can be some short periods when there is huge volatility but over long period stocks witness average volatility and higher than the bonds, but it can not be tagged as too much volatility.

the above is answer..