Standard deviation
From MarketsWiki
Standard deviation (in the financial markets, also referred to as "volatility") is a statistical measure of risk that represents the variability of returns around the mean (average) return.
The lower the standard deviation, the closer the returns are to the mean (average) value. The higher the standard deviation, the more widely dispersed the returns are around the mean (average).[1]
References
- ↑ "Hedge fund terms”. Liberty Gateway. Retrieved on Jan. 27, 2008.
