What is the VIX index? What is it used for? What are considered high values for the VIX and what do the high values indicate?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What is the VIX index? What is it used for? What are considered high values for the VIX and what do the high values indicate? 

 

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Conceptual Introduction:

Volatility: - Volatility is a measure of movement or price variation in assets on daily, weekly, monthly, yearly or annual bases. It is a statistical measure of price movement. In general we calculate standard deviation of historical prices to measure volatility.

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