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Variable annuity. An annuity whose value or income payout fluctuates based upon the investment performance of an underlying portfolio of securities.

Volatility. Characteristic of a security or market to rise or fall sharply in price within a short-term period. Volatility is generally measured by determining standard deviation. The standard deviation of a security measures the degree to which the security fluctuates in relation to its mean return, the average return over a period of time.

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