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to mange the risk and other multi motivations
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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