Investment volatility refers to the rate at which the price of an investment increases or decreases over time. Here's what you need to know: 1. Definition: Volatility measures how much and how quickly investment prices change. 2. Key aspects: - Higher volatility = larger price swings - Lower volatility = more stable prices - Can be measured using standard deviation 3. Important considerations: - Volatility is normal in investing - Generally, higher potential returns come with higher volatility - Time horizon and risk tolerance are crucial factors 4. Managing volatility: - Diversification across assets - Long-term investment strategy - Regular portfolio rebalancing Here's a chart showing the stock return of a hypothetical company over the past year: