Is the Indian rupee volatile?

Apart from relatively easy money approach of the US Federal Reserve, less aggressive intervention by the Reserve Bank of India (RBI) in forex market helped the rupee also emerge as the top-performing Asian currency in May, they opined. …

What is the volatility of a currency?

Volatility in forex trading is a measure of the frequency and extent of changes in a currency’s value. A currency might be described as having high volatility or low volatility depending on how far its value deviates from the average – volatility is a measure of standard deviation.

How do you explain volatility?

Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security. Volatility is often measured as either the standard deviation or variance between returns from that same security or market index.

What is volatility in the stock market?

Volatility is the rate at which the price of a stock increases or decreases over a particular period. Higher stock price volatility often means higher risk and helps an investor to estimate the fluctuations that may happen in the future.

How is volatility related to the price of a security?

Volatility indicates the pricing behavior of the security and helps estimate the fluctuations that may happen in a short period of time. If the prices of a security fluctuate rapidly in a short time span, it is termed to have high volatility. If the prices of a security fluctuate slowly in a longer time span, it is termed to have low volatility.

Which is the correct definition of the word volatility?

plural volatilities. : the quality or state of being volatile: such as. a : a tendency to change quickly and unpredictably price volatility the volatility of the stock market. b : a tendency to erupt in violence or anger the volatility of the region the volatility of his temper.

How is volatility used in option pricing formula?

It is used in option pricing formula to gauge the fluctuations in the returns of the underlying assets. Volatility indicates the pricing behavior of the security and helps estimate the fluctuations that may happen in a short period of time. If the prices of a security fluctuate rapidly in a short time span, it is termed to have high volatility.

How is R-squared used to measure market volatility?

R-Squared. Measuring the correlation of a fund’s movements to that of an index, R-squared describes the level of association between the fund’s volatility and market risk, or more specifically, the degree to which a fund’s volatility is a result of the day-to-day fluctuations experienced by the overall market.