volatility

Definitions (3)
Related Terms
1. Chemistry: Rate at which a chemical will evaporate. Volatility increases with temperature and decreases with pressure. Latin for, to fly away.
2. Economics: Rate of change in price over a given period. Expressed often as a percentage, it is computed as the annualized standard deviation of the percentage change in the daily price.
3. Securities trading: Size and frequency of rapid changes in the price of a security. If the causes of volatility are peculiar to security, it is measured by alpha; if the causes are related to the securities market as a whole, it is measured by beta.

Use 'volatility' in a Sentence

You must measure the volatility of the model's beauty, because beauty does not last forever and fades away like the setting sun.
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Some stocks have a very high volatility and can be quite risky but they also can be the quickest way to get rich.
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Sometimes you just have to take a business route that has high volatility because the potential profits are so high.
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