Financial Education

Standard Deviation

Dispersion measure of returns; input to many risk metrics

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Standard Deviation

Dispersion measure of returns; input to many risk metrics

Definition

Standard deviation measures return variability around the mean. Higher values indicate greater volatility. Used in Sharpe ratio, VaR calculations, and portfolio optimization.

Related Topics

#volatility measurement #risk metric #statistical dispersion #portfolio analysis

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Category: Risk

Risk management involves identifying, assessing, and controlling potential losses in investment portfolios.

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