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A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return from now to the expiration of the option. There are volatility indexes, such as the CBOE Volatility Index, VIX.
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What is the role of an efficient market in finance?
Badu ----------------- The role is to have a lower spread and a lowest volatility of the market .
What are the main headwinds facing the finance industry in the current economic climate?
The main challenges facing the finance industry in the current economic climate include market volatility, regulatory changes, cybersecurity threats, and the impact of global events such as trade tensions and geopolitical instability.
What is beta factor in portfolio management?
In finance, the Beta (β) of a stock or portfolio is a number describing the correlated volatility of an asset in relation to the volatility of the benchmark that said asset is being compared to. This benchmark is generally the overall financial market and is often estimated via the use of representative indices, such as the S&P 500
How can one effectively short volatility in the market?
One can effectively short volatility in the market by using strategies such as selling options, using inverse volatility exchange-traded funds (ETFs), or employing volatility futures contracts. These methods allow investors to profit from a decrease in market volatility.
What does subtotal mean in finance?
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