Question

If the price of an asset often rises and falls by a large margin, it has a high _____.

Select the best answer from the choices provided.
A.
liquidity
B.
volatility
C.
nominal return
D.
real return

Answer 1

B. Volatility

Volatility is a measure of the range of changes in the price of an asset. A stock with high volatility would be considered a more risky investment because it's value is more unpredictable and changing.