What does volatility mean?
Updated 01 September 2014
Volatility is a way of measuring investment risk, basically the extent to which a particular investment goes up and down. It helps investors appreciate the speed and extent of changes in fund prices so they can compare one to another.
But it's much like calculating betting odds - the more unpredictable an investment is, the riskier it is. And volatility is basically a measure of how unpredictable an investment is.