👉 Volatility is a fundamental concept in finance that refers to the degree to which an asset's price changes over time. It is measured by the volatility of its returns, and it can be calculated using various metrics such as mean deviation, standard deviation, or covariance between two assets. Volatility plays a crucial role in determining the riskiness of an investment portfolio. A high level of volatility indicates that there is greater potential for losses than gains, which can lead to higher risks and lower profits. In