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
Expected value
 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...

Do not let yourselves be discouraged or embittered by the smallness of the success you are likely to achieve in trying to make life better. You certainly would not be able, in a single generation, to create an earthly paradise. Who could expect that? But, if you make life ever so little better, you will have done splendidly, and your lives will have been worthwhile. - Arnold Toynbee


Copyright 2009-2018 GVC. All rights reserved.