What type of stock prices tend to be more volatile, and why? What wil

QUESTION

What type of stock prices tend to be more volatile, and why?

What will be an ideal response?

ANSWER

Answer: Prices for growth stocks are more volatile. These are usually for small, innovative new companies in hot industries with a lot of change and uncertainty.
Explanation: Growth stocks prices tend to be more volatile; they rise quickly and fall quickly. Growth stocks tend to be issued by hot, new innovative companies in hot industries that tend to function in a more volatile economic sphere.