Volatility: Walmart vs. Target

Adassah Hall

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Huaibing Yu

Abstract:

Investing in stocks is not always easy. One way we can make sure we are getting great returns is finding the volatility of a stock. Volatility refers to the standard deviation of a stock's return over a given period of time. High volatility meaning prices are changing quickly over time making it a more risky stock. A more risky stock can mean higher returns. Low volatility meaning stable steady prices and lower risk, low returns.

Volatility is important because this relates to risk. Investors use risk to measure the potential return of an investment/stock. It plays a role for business, policemakers, financial institutions and investors. Many factors can influence volatility and make it fluctuate. Information about volatility can help many individuals make informed financial decisions.

By doing the research and understanding volatility, this can help contribute to better Financial modeling and risk assessment. This promotes financial literacy and helps people plan for investment, long term wealth building and retirement.