Question

If an investment is considered “volatile”, it means...

Answer 1

B the value of the investment may be hard to predict

Answer 2

Answer: B) the value of the investment may be hard to predict.

Volatility refers to the statistical measure of how likely a market is to rise or fall sharply in a short period of time. When times are "volatile," investors tend to invest less or in safer ways.

Some degree of volatility is inevitable, as markets naturally move up and down. However, an investment is considered "volatile" if the value of the  investment within a short period of time is particularly difficult to predict.