Finance & Business
Volatility
Describes a mathematical quantity that measures the range of fluctuation of foreign exchange rates during a defined period of time. It is used to determine the level of probable risk of the invested capital. For example, the average value of a foreign exchange is calculated, from which the fluctuations that occur are measured to determine how far the fund has deviated from this value. This calculated range of fluctuation surrounding the average value is called volatility.
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