tending to rapid and extreme fluctuations. The term is used to describe the size and frequency of the fluctuations in the price of a particular stock, bond, or commodity. Market-related volatility in stocks is measured by the beta coefficient.
not permanent; erased when turned off.The memory(RAM)of a computer is volatile; that is, it goes blank when power is removed. Flash memory and disks are non-volatile. In some programming languages, a variable is declared volatile if it can be changed by something outside the program.
tending to rapid and extreme fluctuations. The term is used to describe the size and frequency of the fluctuations in the price of a particular stock, bond, or commodity. A stock may be volatile because the outlook for the company is particularly uncertain, because there are only a few shares outstanding (see also thin market), or because of various other reasons. Where the reasons for the variation have to do with the particular security as distinguished from market conditions, return is measured by a concept called alpha. A stock with an alpha factor of 1.25 is projected to rise in price by 25% in a year on the strength of its inherent values such as growth in earnings per share and regardless of the performance of the market as a whole. Market-related volatility, also called systematic risk, is measured by beta.
