VOLATILITY


Meaning of VOLATILITY in English

A measure of risk based on the standard deviation of the asset return. Also, volatility is a variable that appears in option pricing formulas. In the option pricing formula, it denotes the volatility of the underlying asset return from now to the expiration of the option . Some have created volatility indices. Here is an example, scale is 1-9; higher rating indirectly higher risk.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.