Volatility (economics) - Hutchinson encyclopedia article about Volatility (economics) Printer Friendly
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volatility
(redirected from Volatility (economics))

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volatility

Amount by which an equity's price moves up and down beyond the market's average range. An equity's volatility is normally related to the risk associated with the company, which in turn is related to such things as gearing, the type of business, and the size of the company. The shares of small companies with high debt, operating in a new and unproven market, are likely to be highly volatile.



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