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
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- MJ63
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