How is skew measured for the stock markets?
Hello friends lets understand below topic so we can understand market volatility What is volatility in the context of the stock markets? What is volatility in the context of the stock markets? We often read in the newspapers or watch in news channels about Sensex and Nifty going up and down. Headlines such as “Sensex in the red” or “Nifty in the green” are common. Since the market’s movements are driven by the changes in stock prices, the ups and downs are a natural part of the process. But when these ups and downs happen too frequently, the markets are termed as volatile. In technical terms, according to Investopedia, “volatility is a statistical measure of the dispersion of returns for a given security or market index.” Volatility is associated with big swings in either the positive or negative direction of the markets. Volatility in the stock market is also associated with risks. Investments risks increase with increased volatility in the stock markets. This risk can be interpreted