Stock Market Volatility
Although the stock market has risen sharply over the last three years, a casual examination indicates a bumpier path since the middle of 1996. A more structured approach looks at the standard deviation of the index, which shows a dramatic upturn starting in mid-1996 and continuing through 1997. The standard deviation, a measure of the size of market fluctuations, has increased by a factor of 10 since May 1995.
Suggested citation: “Stock Market Volatility,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-10, pp. 06, 10.01.1997.