Money · RATIOXA GLOSSARY
Volatility
Degree of fluctuation in prices or returns; it is not a complete measure of risk.
Simple definition
Degree of fluctuation in prices or returns; it is not a complete measure of risk.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
A 6% expected return can include years with substantially negative outcomes.