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Why do investors care about volatility?

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تم إضافة السؤال من قبل DrSedeek ElHakeem , Health Insurance advisor , HICARE
تاريخ النشر: 2016/05/09
Antonio Di  Sabatino
من قبل Antonio Di Sabatino , Language C++” Technical Herbert Schildt ,1996

to mange the risk and other multi motivations

Sanie Zehra
من قبل Sanie Zehra

volatility means the fluctuations of prices of investment. the investors care about it for several reasons..

if the price volatility occurs, it means that the investor can purchase its assets at lower prices and sale at higher prices. it also determines the size of portfolio as well as the returns generate by it. to protect their portfolio from downward trend due to economic conditions, they invest in the assets that are from different directions to stabilize its portfolio.

 

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