Standard deviation is a metric that shows the variability of a security’s returns over time. It can be used to gauge volatility based on past performance and compare a future return to past returns.

You're currently following this author! Want to unfollow? Unsubscribe via the link in your email. Standard deviation is a concept that's thrown around frequently in finance. So what is it? When ...

For example, suppose that the manufacturing process described in the previous example produces engines whose weights are normally distributed with a mean of 1250 and a standard deviation of 12. The ...