Standard Deviation
Standard Deviation (σ)
Risk & PortfolioA measure of the dispersion of returns around the average. Higher standard deviation means higher volatility/risk.
Formula
σ = √[Σ(xi - μ)² / n]
Why it matters
Used to measure investment risk. Two-thirds of returns typically fall within 1 standard deviation of average.
Indian example
Related terms
Learn the concept
Mutual Funds, ETFs, AIFs →From the research
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