When an investment's price frequently changes and is hard to predict, it is described as?

When an investment's price frequently changes and is hard to predict, it is described as volatile. Volatility refers to the degree of variation in the price of a financial asset over time. High volatility indicates that the price can fluctuate dramatically within a short period, making it challenging for investors to forecast future price movements. This characteristic is particularly important to consider for investors because it affects risk and the potential for returns.

Stable investments, on the other hand, show little price fluctuation over time and are generally more predictable. Reliable investments suggest a consistent performance history, which is not indicative of the unpredictable nature that volatility represents. Predictable investments have price movements that can be anticipated based on historical trends or data, which contrasts with the uncertainty associated with volatility. Thus, understanding volatility is crucial for investors to manage risks and develop strategies that align with their investment goals.