Question

Volatility refers to:

how wildly returns fluctuate over time.
how liquid an investment becomes over time.
the degree to which purchasing power is lost due to inflation.
the maximum expected loss someone can expect over time.

Answer 1

Volatility refers to how wildly returns fluctuate over time in the stock market, and it is a measure of the risk associated with an investment.

Step-by-step explanation:

Volatility refers to how wildly returns fluctuate over time in the stock market. It is a measure of the risk associated with an investment. In the short term, stock market returns can vary greatly and be unpredictable, leading to high volatility. However, over longer periods of time, stock market ups and downs tend to even out, resulting in higher average returns.