- Standard Deviation
- 1. A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.

2. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility.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.

*Investment dictionary.
Academic.
2012.*

### Look at other dictionaries:

**standard deviation**— n. Statistics a measure of variability equal to the square root of the arithmetic average of the squares of the deviations from the mean in a frequency distribution … English World dictionary**Standard deviation**— In probability and statistics, the standard deviation is a measure of the dispersion of a collection of values. It can apply to a probability distribution, a random variable, a population or a data set. The standard deviation is usually denoted… … Wikipedia**standard deviation**— A standard deviation tells us how much specific examples vary from the average in a particular set. Thus, the larger the standard deviation, the more diverse/volatile are the examples. The more volatile the examples, the less predictable and… … Financial and business terms**Standard deviation**— The square root of the variance. A measure of dispersion of a set of data from their mean. The New York Times Financial Glossary * * * standard deviation standard deviation ➔ deviation * * * A statistical measure of the amount by which one… … Financial and business terms**standard deviation**— (sd) a mathematical unit used to describe the spread or dispersion of a set of data. Each item in the data set has a deviation from the mean (the ordinary average) of the data. The standard deviation is computed by taking the squares of these… … Dictionary of units of measurement**standard deviation**— UK / US noun [countable] Word forms standard deviation : singular standard deviation plural standard deviations maths a number that shows how much smaller or larger a number in a set of numbers is from the average of the set … English dictionary**standard deviation**— noun the square root of the variance (Freq. 8) • Topics: ↑statistics • Hypernyms: ↑variance * * * ˌstandard deviˈation [standard deviation] … Useful english dictionary**standard deviation**— A measure of the dispersion of statistical data. For a series of n values x1, x2, xn, it is given by the formula →[(l n) ∑ (xi x)] where x is the average of the n values. The standard deviation of the returns from an investment can be used as a… … Big dictionary of business and management**Standard deviation**— A statistic used in *probability distribution models. In a *normal distribution of a *population of random items, the standard deviation represents the typical distance of an item from the population’s *mean value … Auditor's dictionary**standard deviation**— standartinis nuokrypis statusas T sritis biomedicinos mokslai apibrėžtis ↑Kintamojo reikšmių sklaidos apibūdinimas. Standartinis nuokrypis lygus teigiamai kvadratinės šaknies iš ↑dispersijos reikšmei. atitikmenys: angl. standard deviation… … Lithuanian dictionary (lietuvių žodynas)