The Limbo Stick Metric! How low did you go? This broadly quoted metric covers trading prices of a given stock (and yes, it's usually used for stocks, not so much for bonds) over the trailing 52 weeks, aka a single Earth year. The good indices that track include intraday highs and lows, so that closing prices might have been a bit higher than the absolute low price that the stock hit in the last year. And why does this matter? Because investors love to bemoan the price at which they could have gotten this $72.36 stock when it was trading at $48.96 29 weeks ago. But yeah...that's the way the limbo stick crumbles.
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Finance: What is Volatility?77 Views
In finance allah shmoop what is volatility beta this thing
that's the symbol for volatility on the street we mean
the wall one not the mean one and it is
so commonly used that the in crowd members just say
beta when they're referring to volatility unless they're from tennessee
in which case they say you ve all y'all all
right so here's a siri's of stock prices stamped each
day that has lo ve all or low beta and
here's a siri's that has high beta dead man's pulse
versus rocky mountains Well what makes a stock volatile uncertainty
Think about it this way If everyone knew for sure
what a given stocks earnings would be for the next
ten years quarter by quarter and they also knew what
the overall markets average earnings would be in a few
other things like revenue growth and world conditions and we're
going to be war inflation there wouldn't be a lot
of guesswork The quote right unquote price today would be
thirty two dollars eighty three cents and the quote right
unquote rate of compounding would be eight percent in the
stock would slowly go up but this rate but in
non disney land riel life well nobody really knows much
of anything So stockcharts look like this and nerve endings
of wall street traders look like this Neither of them 00:01:19.771 --> [endTime] looked much like this chart So that's all you
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