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Volatility refers again to the diploma of variation within the worth of a monetary instrument over time. It is a statistical measure that may indicate the level of threat related to an funding or market. High volatility means that the value of an asset can change dramatically in a short period, while low volatility indicates stability. In financial markets, volatility may be influenced by various elements including financial indicators, market sentiment, and geopolitical occasions. Investors usually use volatility to assess potential dangers and returns on their
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