Home > Term: Standard deviation
Standard deviation
Measures the volatility of a fund's historical returns. When a fund has a high standard deviation, its range of performance has been very wide, indicating greater potential for volatility. A more volatile fund will have a greater difference between its highest historical return and its lowest historical return. More volatile funds may be riskier investments.
- Part of Speech: noun
- Industry/Domain: Financial services
- Category: Funds
- Company: Merrill Lynch
0
Creator
- Harry8L
- 100% positive feedback
(London, United Kingdom)