The Relationship Between Volatility & Returns

Apr 25, 2019 | Sandra Cramen


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"Generally, the more risk – sometimes referred to as volatility – you are willing to accept in your portfolio, the greater the potential returns."

Understanding the interaction between volatility and returns is a fundamental part of being a good investor. As you work toward your investing goals (e.g., retirement, big purchase, education), it is important to understand the relationship between the two and find a balance that works for you.

Generally, the more risk – sometimes referred to as volatility – you are willing to accept in your portfolio, the greater the potential returns.

 

What is Volatility? Click here to continue reading.