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Glossary term

Volatility

Standard deviation of returns

🌍 UniversalReviewed Plain-English
Definition

What is Volatility?

Volatility measures how much an asset's return swings around its average, usually as annualised standard deviation. Large-cap equity ≈ 15–20%; bonds ≈ 3–8%; crypto ≈ 70–100%. Higher volatility = higher expected long-run return for most risk assets, but also larger drawdowns along the way.

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