First, about the return, suppose you have 1 million yuan, and when the return reaches 100%, your assets will reach 2 million yuan. If you lose 50% next, it means that your assets will return to 1 million yuan. Obviously, it is much easier to lose 50% than to earn 100%.
Second, regarding the rise and fall, if you have 1 million yuan, your assets will reach 1.1 million yuan after a 10% rise on the first day, and then fall 10% on the second day, and your assets will remain at 990,000 yuan. On the contrary, if it falls 10% on the first day and rises 10% on the second day, your assets will still be 990,000 yuan.
3. Regarding volatility, if you have 1 million yuan, you earn 40% in the first year, lose 20% in the second year, earn 40% in the third year, lose 20% in the fourth year, earn 40% in the fifth year, and lose 20% in the sixth year. The remaining assets are 1.405 million yuan, and the annualized rate of return over six years is only 5.83%, which is even lower than the face value interest rate of 5-year bearer treasury bonds.