What is a volatile investment?

Accounting Dec 17, 2020

Expert Solution

High-risk investments are high-reward opportunities, but they are volatile investments, meaning that the value of the investment might shift radically in a short period of time. In the stock market, individual stocks can change in value or trade very rapidly and have high volatility when compared with bonds or mutual funds (groups of stocks), which offer more stable payouts and do not see wild fluctuations in value over time.

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