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Volatility explained.

A description of variability in prices or returns over time. It can help characterize uncertainty, but does not capture every source of risk or establish the direction of the next move.

Markets

Volatility

A description of variability in prices or returns over time. It can help characterize uncertainty, but does not capture every source of risk or establish the direction of the next move.

Example: Two shares may have similar average returns with different price swings.

Watch for: Treating a recent quiet period as proof that losses are unlikely.

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