Question

What does volatility refer​ to?

A.

The likelihood that a​ security's value will only increase in value

B.

A​ security's value as compared to an industry benchmark

C.

The likelihood that a​ security's value will only decrease in value

D.

The amount of uncertainty or risk about changes in a​ security's value

Answer 1

What does volatility refer to?

Answer:

D. The amount of uncertainty or risk about changes in security’s value.

Small explanation:

Volatility refers to measurement, which shows up or down swing in price of particular security in short time, it can be measured by using of standard deviation or variation. If the marker is highly volatile means there are chances of changes in price in large rang. When stocks are highly volatile means stocks are more risky because there are more chances of changes in price in wide range, less volatile stocks are less risky or uncertain because there are less chances of changes in price in wide range. Here it means higher the volatility higher the risk and vice versa.