1. What is Volatility?  Volatility is a measure of variation. If the price of asset A moves more than asset B, asset B is considered more volatile. It is as simple as that. 2. How is volatility measured? Beta is the most common measure of volatility. It is calculated using regression analysis, and it refers to a stock’s movement in response to the general market. A stock with a beta of 1 is expected to move in line with the market. A stock with a beta of 2 will be expected to move twice as much as the market and when the market rises by 10%, its price should increase by 20%. Conversely, stocks with a beta of less than 1 are deemed to move less than the overall market and hence considered to be less volatile. Finally, stocks with a negative beta will move inversely with the market ......