Economics Financial Markets Questions
Market volatility refers to the degree of variation or fluctuation in the prices or returns of financial assets within a specific market or market segment over a given period of time. It measures the extent to which prices or returns deviate from their average or expected values. Higher market volatility indicates greater uncertainty and risk, as prices can experience rapid and significant changes in either direction. Factors such as economic conditions, geopolitical events, investor sentiment, and market liquidity can all contribute to market volatility.