Volatility risk

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Volatility risk
Volatility risk in financial markets is the likelihood of fluctuations in the exchange rate of currencies. Therefore, it is a probability measure of the threat that an exchange rate movement poses to an investor's portfolio in a foreign currency. The volatility of the exchange rate is measured as standard deviation over a dataset of exchange rate movements.
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Campbell R. Harvey's Hypertextual Finance DictionaryDownload this dictionary
Volatility risk
The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset.

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