Money · RATIOXA GLOSSARY

Volatility

Degree of fluctuation in prices or returns; it is not a complete measure of risk.

01

Simple definition

Degree of fluctuation in prices or returns; it is not a complete measure of risk.

02

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.

03

Worked example

A 6% expected return can include years with substantially negative outcomes.