About 8 results (1.12 seconds) "firms" (and any subsequent words) was ignored because we limit queries to 32 words. Did you mean: Hello my dear students in less than one paragraph discuss if the stock market and individual stocks are more volatile today than in the past. Further discuss using the information from a study by campbell, lettau, malkiel and xu, 2001. this study looked at 9000 firms from 1962-97.they decomposed the stock into market wide, industry-wide and firm specific volatility. they found that while there were periods of increase volatility, for example during the oil crisis in the 1970s, average market volatility as measured by standard deviation has remained relatively stable over time-14% in the 1970s 16% in the 1980s and 11% in the 1990s. industry volatility has also remain stable over time. Firm specific volatility, on the other hand, more doubled from 1962 to 1997 the period of the study. The most volatile stocks moved 25% in a single day. Firm specific volatility was 65% of total volatility in 1962 and 76% in 1997. Honorable students why is it that individual stocks can be more volatile , yet not the market as a whole.A university of Nevada study at the sam time found that 100 stocks were needed to achieve complete diversification. The university of Nevada study found that the mean culprits advocating too few stocks for diversification were textbooks, professional journals and the wall street journal(which has since printed a story about this study), some individuals choose to hold portfolios with a smaller number of stocks because it is difficult to research a large number of stocks. Why are individual stocks more volatile? Why do investors think the market as a whole is more volatile