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Simple explanation of Volatility Target?

Unregistered39 · 2010-12-20 22:00:59

Hi there, I'm editing a brochure on wealth management and came across this term but have no clue what it means and Google is making my eyes hurt with jargon. Could some kind person tell me what it means in layman's terms? Thanks!

20-12-2010 10:00pm

#1

Unregistered39

Registered Users, Registered Users 2 Posts: 408 ✭✭

Join Date: May 2009

Posts: 337

Hi there,

I'm editing a brochure on wealth management and came across this term but have no clue what it means and Google is making my eyes hurt with jargon. Could some kind person tell me what it means in layman's terms?

Thanks!

0

Comments

#2 21-12-2010 10:06am

soddy1979

Registered Users, Registered Users 2 Posts: 284 ✭✭

Join Date: May 2008

Posts: 254

Simply, it means your risk target.

If your target volatility is 10% and your investment is EUR100, you don't want to invest in an asset where there is a given probability of its value falling below EUR90

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