MoneyGlossary.com
Home  

Volatility

Definition: [crh] A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return from now to the expiration of the option. There are volatility indexes<Definition: /A>. Such as a scale of 1-9; a higher rating means higher risk.

<< Go back