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standard deviation

Definition

A statistical measure of the historical volatility of a mutual fund or portfolio, usually computed using 36 monthly returns. More generally, a measure of the extent to which numbers are spread around their average.

Featured Tip

Using Standard Deviation in TradingStandard deviation, which can be found in a number of published services, measures a stock's volatility, regardless of the cause. Higher standard deviations represent more volatility. In statistical t ... Read more

Additional Tip(s)

Eliminating Market Risk
Stock Diversification and the Modern Portfolio Theory
Long-Term Records are Full of Ups and Downs
Be Persistently Different Than the Index

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Nearby Terms

standard
standard accounting practice
standard cost
standard costing
standard deduction
standard deviation
standard direct labour cost
standard error
Standard Industrial Classification
standard letter
standard lot

Popular 'Mutual Funds' Terms

hedge fund
mutual fund
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Related Terms

covariance
Black-Scholes Option Pricing Model
relative volatility
bollinger bands
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tracking error
volatility
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dispersion