Question

If an investment is considered “volatile”, it means...

Answer 1

A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time. One measure of the relative volatility of a particular stock to the market is its beta.

Answer 2

If an investment is considered volatile, it means that the asset selected is highly risky. It is understood that the asset responds quickly to the organization's decisions implying that negative outcomes will lead the price of the asset to drop sharply, and positive outcomes will make the price sky-rocket.