Most investors have absolutely no idea how much volatility they can expect from their investments. Many will simply tell their broker that they are aggressive or conservative. These investors will often find themselves in shock or dismay when their portfolios fluctuate in a manner which they never expected.
A proper measurement of volatility in your portfolio is an actual mathematical number which will show the long-term expected deviations for the portfolio’s holdings. It is critical for both proper performance and personal peace of mind for all investors to know their expected volatility. Learn more here.
