Tag Archives: volatility


Beta is asset’s sensitivity to market risk. Stocks that carry higher beta ( greater than 1) are considered to be more volatile than market and therefore should have higher expected returns. Capital Asset Pricing Model (CAPM) presented by Stanford professor William Sharpe explains the theory of beta.


Volatility is the characteristic of financial instrument changing its price often and unpredictably. Chicago Board Options Exchange Market Volatility Index (VIX) measures and represents stock market volatility over next 30 days.

V shaped downturns

V shaped downturn is a graphic representation of a security price when it rapidly falls followed by a rapid rise.