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Created on 10.04.2019

Put it simply, please! Volatility

What is meant by volatility in relation to financial investments? Joel Schmid, Deputy Branch Manager at the PostFinance branch in Berne, explains it in 45 seconds.

Price fluctuations, risk, long-term, potential returns – have you understood everything? A detailed explanation is provided here:

Volatility is a statistical measurement that concerns the range of fluctuation of an investment or the upward and downward movements of the price. It indicates the extent to which the value of an investment can change in relation to the average price. Shares, for example, tend to be more volatile than bonds – which means their prices fluctuate to a greater extent. The volatility also reflects the risk that an investor assumes when purchasing the asset. This means that a volatile investment also entails greater risk. This can nevertheless generally be offset by a long investment horizon.

Want to find out more about price fluctuations? Read our article entitled “Why prices fluctuate?” 

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