What characteristic describes the sensitivity of investment capital to financial markets and economic changes?

The characteristic that describes the sensitivity of investment capital to financial markets and economic changes is volatility. Volatility refers to the degree of variation in the trading price of a financial instrument over time, which directly relates to how much the value of an investment can change in response to market fluctuations and economic events. Investments with high volatility tend to experience significant price swings, meaning their value can increase or decrease dramatically within short periods. This inherent risk makes volatility a critical factor for investors to consider when assessing how their capital may react to market developments and economic shifts.

Other options like resilience, sensitivity, and stability touch on important aspects of investments but do not specifically capture the essence of how much investment capital can fluctuate in response to external factors. Resilience refers more to an investment's ability to recover from downturns, while stability indicates a lack of price fluctuation over time. Sensitivity, while related, does not encompass the systematic variability in investment values. Thus, volatility is the most accurate descriptor of how investment capital responds to the ever-changing dynamics of financial markets and the economy.