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5.3.3 Are some shares riskier than others?

Earlier, you looked at the prices of some selected UK companies’ share prices. The details included the price highs and lows of each of the shares over the past year.

Some share prices are more volatile than others. Why do you think this is?

To consider this issue you might want to think about different types of company – utilities, supermarkets, IT companies, construction companies. How might the activities of these different companies become reflected in the volatility of their share prices?

Figure 6