I like to invest in the share market now... Since the shares are underpriced now i like to buy some good & reliable shares... I am going to buy the shares for long term trading......
Yeah -40% Yikes! I figured 15-20% would be the norm right now. Am I doing something wrong? Here's my investment breakdown...
48.25% FID CONTRAFUND
19.47% FID DISCIPLINED EQTY
15...
I am having a compition with a family member. If i can find a stock that makes money in the next month i get to keep what it made, and if they lose money i have to pay. What are some stocks that ...
With the current worry about property prices we are in the process of selling our house. We should clear around 400k and presume the best thing to do would be to put into high interest account, max ...
formula for calculataing maturity value after period of ten years with rate of interest 8% compounded annually with monthly contribution of Rs 550 ....
we have a project due at the end of the semester and we have to buy stocks with a specified amount of money...so wat do u know about stocks??? buying stocks??? any good website to learn about stocks??...
My mother started investing in the forex market recently. I'm afraid she doesn't know what she is getting herself into, because I heard that that returns are high but the risks are even ...
standard deviation is a measure of the volatility of returns.
people tend to think that it's important because most people are stupid and don't understand more accurate/important (read: complex) measures like kurtosis, and expect that all returns follow a normal distribution (which isn't true, but makes understanding complex mathematics simpler for people that aren't terribly intelligent).
Leann C
The standard deviation could be used as a measure of risk. Or how volitale an investment vehicle is.
High standard deviation = more risk
Low standard deviation = less risk
src50
It is a measure of how "scattered" the data is.
socrates
Standard deviation can be used to help analyze stock charts. In charts one standard deviation is built around a particular moving average (Bollinger bands). The idea is that stock prices have a tendency to move back toward its moving average. Therefore you can see when prices have moved too far in one direction or another which may give you a clue to good trading opportunities.
cme
Standard deviation is a statistical measurement that sheds light on historical volatility. For example, a volatile stock will have a high standard deviation while the deviation of a stable blue chip stock will be lower. A large dispersion tells us how much the return on the fund is deviating from the expected normal returns.
Sparky
Standard deviation in the investment context is sometimes used as a proxy for the risk inherent in an investment. By calculating the average return over a number of periods and then calculating the SD of those returns, some people think that gives an indication of the risk (or probability) of future returns being within a certain range of the average of the previous returns.
This assumes that returns in the past can predict returns in the future which is a big assumption. Be wary.
Travis D
it tells you how spaced far out other pieces of data are from the average of them.
Robert M
It provides the range of possible outcomes.
If the expected is 12% with a standard deviation of 2%, then the range of possible outcomes is 10% to 14%.
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