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**volatility**is

**calculated**as the squareroot of the variance, S. This can be

**calculated**asV=sqrt(S). This "square root" measures the deviation of a set ofreturns (perhaps daily, weekly or monthly returns) from their mean.It is also called the Root Mean Square, or RMS, of the deviationsfrom the mean return.

Also to know is, what is the volatility of a stock?

**Volatility** ismeasured using the standard deviation in price change of a**stock's** price against its price at any given time, ormeasured as the variance of the change of the **stock** priceagainst a benchmark, for example a market index. A commonly quotedmeasure of **volatility** is a **stock's** beta.

**measures**a security'sprice movements compared to its average over time, beta

**measures**a security's

**volatility**relative to that ofthe wider market. A beta of 1 means the security has

**volatility**that mirrors the degree and direction of themarket as a whole.

Thereof, how do you calculate annual volatility?

Annualizing **volatility** To present this **volatility** in annualized terms,we simply need to multiply our daily standard deviation by thesquare root of 252. This assumes there are 252 trading days in agiven year. The **formula** for square root in Excel is =SQRT().In our example, 1.73% times the square root of 252 is27.4%.

**Volatility** From the Investor's Point of View.**Stock** market **volatility** is arguably one of the mostmisunderstood concepts in investing. Simply put, **volatility**is the range of price change a security experiences over a givenperiod of time. If the price stays relatively stable, the securityhas low **volatility**.