Advertising

Standard deviation

• The most common statistical indicator of an asset's risk; it measures (in the same units as the expected value) the dispersion of possible values around the expected value.

• Is a measure of volatility, risk, or statistical dispersion. The standard deviation is calculated by:

  • computing the mean of the series
  • then taking the deviation by subtracting the mean from each observation,
  • squaring the differences or deviations for each observation,
  • dividing the sum of the squared deviations by the number of observations
  • and then calculating the positive square root of the sum of squared deviations.

In other words, the standard deviation is the positive square root of the variance.

• The square root of the variance. A measure of dispersion of a set of data from their mean.

 
 Embedded terms in definition
 Dispersion
Expected value
Mean
Risk
Series
Variance
Volatility
 
 Related Terms
 Gold exchange standard
Gold standard
Standard & poor's 500 index
Standard & poor's corporation
Standard & poor's financial strength
Standard debt provisions
Standard error
Standard industrial classification code
Standard normal distribution or standardized normal distribution
Std deviation rating std deviation rating

<< Standard debt provisions Standard error >>

Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...

Character cannot be developed in ease and quiet. Only through experiences of trial and suffering can the soul be strengthened, vision cleared, ambition inspired and success achieved. Helen Adams Keller

Advertising



Copyright 2009-2018 GVC. All rights reserved.