Financial market volatility is defined as the rate at which the price of an asset rises, or falls, given a particular set of returns.

Investors can use this data on long term stock market volatility to align their portfolios with the associated expected returns.

**Formula to calculate daily volatility**.

Variance in this case, is the variance of the stock price.

**Example:**

Suppose you calculated the stock price variance and found it to be 625. Calculate the daily volatility.

Therefore, the daily volatility is 25.