ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Stocks Videos 415 videos
What is covariance? Covariance is the comparison of how assets move in the markets. Positive covariance is when assets move in tandem, such as when...
Rights offerings are essentially hostile takeover defenses. Unfortunately, they're not as cool as swords and shields.
Finance: What is Volatility? 77 Views
Share It!
Description:
What is volatility? In the world of investing, volatility basically means riskiness. It looks at the returns for stocks or indexes, and if they are all over the place, this signals high volatility. Because highly volatile investments see big changes in returns, they are obviously more risky.
- Social Studies / Finance
- Finance / Financial Responsibility
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Bonds
- Terms and Concepts / Charts
- Terms and Concepts / Company Valuation
- Terms and Concepts / Metrics
- Terms and Concepts / Stocks
- Terms and Concepts / Tech
- Terms and Concepts / Trading
- College and Career / Personal Finance
Transcript
- 00:00
In finance allah shmoop what is volatility beta this thing
- 00:08
that's the symbol for volatility on the street we mean
- 00:11
the wall one not the mean one and it is
- 00:14
so commonly used that the in crowd members just say
- 00:17
beta when they're referring to volatility unless they're from tennessee
Full Transcript
- 00:21
in which case they say you ve all y'all all
- 00:24
right so here's a siri's of stock prices stamped each
- 00:27
day that has lo ve all or low beta and
- 00:30
here's a siri's that has high beta dead man's pulse
- 00:33
versus rocky mountains Well what makes a stock volatile uncertainty
- 00:38
Think about it this way If everyone knew for sure
- 00:41
what a given stocks earnings would be for the next
- 00:44
ten years quarter by quarter and they also knew what
- 00:47
the overall markets average earnings would be in a few
- 00:50
other things like revenue growth and world conditions and we're
- 00:53
going to be war inflation there wouldn't be a lot
- 00:56
of guesswork The quote right unquote price today would be
- 00:59
thirty two dollars eighty three cents and the quote right
- 01:03
unquote rate of compounding would be eight percent in the
- 01:06
stock would slowly go up but this rate but in
- 01:09
non disney land riel life well nobody really knows much
- 01:12
of anything So stockcharts look like this and nerve endings
- 01:16
of wall street traders look like this Neither of them 00:01:19.771 --> [endTime] looked much like this chart So that's all you
Related Videos
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...
GED Social Studies 1.1 Civics and Government
