Volatility Analysis and Asset Pricing of Stock Portfolios

Since a vast number of investment funds are available at the market it may be difficult for investors to figure out which fund might serve their needs the best. Especially in times where the uncertainty in the market increases it might be even more important to figure out how investment funds response to such volatility shocks. Volatility as a risk measure may not be constant over time but tight connected to the market risk in contrast. Hence the exploration of the investment fund's volatility response to shocks in the stock market may give a deeper understanding of what the actual risk of an investor might be.