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Assessment
Assessment
Regarding investment, volatility is the pattern and pace at which a stock's price
reaches its peak or its lowest point during a given time. For investors, for instance, volatility
may serve as an opportunity since it allows them to analyze and foresee future changes in
their investments. Because volatility in the market allows investors to recognize possible
risks or uncertainty, it can also present an opportunity because it helps them identify where
to place their money and reach the goals they desire.
2. Explain the value of properly understanding the risk of the product they are
investing in.