There are 5 bajillion places on the web where you can look up volatility. Most of them will have it right. This statement "If the volatility is 35% that means the average it can vary from the average return is 35%. " is not true (there's a square root being missed there at least) and it barely makes sense. "The average is can vary"? Huh? Yahoo answers is a poor way to get fundamental information like this because you just get some drooling idiot who sort-of knows the answer.

The link you posted is to a GJR-GARCH volatility prediction. You are about 4 semesters from being able to get GJR-GARCH prediction.

both. Volatility measures the riskiness of an asset.

So if a stock over a week (business week) earned 1%,2%,3%,4%, and 5%. The average return would be 3%. Volatility would then be measured as the square root of the average of the summed squared differences between each observation and the average return. The calculation would look like this:

(((.01-.03)^2 + (.02-.03)^2 + (.03-.03)^2 + (.04-.03)^2 + (.05-.03)^2)^(.5))/5

If the volatility is 35% that means the average it can vary from the average return is 35%.

What exactly does Volatility measure? And is this a right estimate for Yum! Brands, Inc.

http://vlab.stern.nyu.edu/analysis/VOL.YUM:US-R.GARCHg

Around 35%?

Does that mean this stock can return 35% of my money invested or potentially lose my 35%?