The volatility index is often interpreted as an index of investor fear.

Name: The volatility index is often interpreted as an index of investor fear.
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Question

The volatility index is often interpreted as an index of investor fear.​

Quizplus · Accepted Answer

The volatility index reflects the level of uncertainty and turbulence in the market, which can be associated with investor fear or anxiety. High levels of volatility are often seen as a sign of market instability and may prompt investors to be more cautious in their decision-making.

The Volatility Index Is Often Interpreted as an Index of Investor