Question

If an investment is considered ���volatile���, it means... athe investment will experience rapid growth over time. bthe value of the investment may be hard to predict. cthe investment is high-risk, and its price will increase quickly. dthe investment is undervalued and may increase over time.

Answer 1

Answer:

The correct answer is the option C: the investment is high-risk, and its price will increase quickly.

Explanation:

In a stock market, volability is the range of price that tends to change the security of the investment in a certain period of time, that means that makes the investment less predictable and that it has a higher risk than other investments. This type of investment are determinated by its risk, where the price could increase quickly or decrease quickly as well, therefore characterized by erratic movements and consequently that makes it very hard to predict what would happen.

Answer 2

The value of the investment could be unpredictable when the investment is volatile. To add up, the fluctuation patterns of the value could be a lot different than it should be. It can be observed in a graph that the curve just suddenly rises and falls covering only a smaller amount of time.