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How are volatility and risk related in an investment?

A.a volatile investment is less risky
B.a volatile investment is more risky
C.volatility and risk are not related

2 Answers

5 votes
The answer is B
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User Sumit Kumar Gupta
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1 vote

Answer:

Option: B is the correct answer.

B. a volatile investment is more risky.

Explanation:

Risk--

Risk is the probability or likelihood of losses relative to the expected return on any particular investment.

Volatility--

Volatility is just another way to say unpredictable fluctuation.It simply refers to the natural movement of the stock markets both up and down, and up and down again.

Volatility is written into the DNA of the market.

As in the volatile investment there is a risk that there might be a loss in the investment.

Hence, the correct answer is:

Option: B.

User Sesi
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