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Glossary Mutual Fund / Term

Standard Deviation

Standard deviation is a statistical unit which is used to measure an investment’s volatility. It enables investors to quantify the degree of risk associated with a particular investment. It uses the historical volatility trends of the investment to arrive at the amount of likely risk in the future.

There is a direct correlation between the associated risk and standard deviation. Higher the risk, higher will be the value of standard deviation.

Permanent link Standard Deviation - Creation date 2020-05-23


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