Question

You found year over year returns of stock are highly volatile. Does this mean you should necessarily consider this stock a risky investment? Why/Why not?

Answer 1

It absolutely depends on the risk appetite of the person who is investing. For example if the risk taking ability of the person is high then he might not consider it as a risky investment and might enjoy the high risk return reward policy.

Whereas if the person's risk taking ability is less then he might not be comfortable with too much volatility of the stock price with respect to a much stable stock which can make a less upward / downward movement and hence will consider it as a risky investment.