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the definition is confusing so I would suggest you to ignore it! 1.3k views · View 2 Upvoters · Answer requested by Vinodini In finance, volatility (symbol σ) is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns. The term volatility is often used to mean standard deviation. A money market fund had an annual average return of 6%, with a standard deviation of 1%. An equity fund has experienced an average return of 18%, with standard deviation of