Then he tried calculating the average standard deviation by doing the same thing. He added the three standard deviations and divided them by three to get an average of 5.1. Then he did the ...

This calculation also prevents differences above the mean from canceling out those below, which would result in a variance of zero. But how do you interpret standard deviation once you figure it out?

Investors often use standard deviation to quantify asset volatility. You can calculate standard deviation of an asset in a spreadsheet with a series of daily closing values. Standard deviation ...

How to calculate standard deviation using the defining formula is explained. Discuss with students the need to go beyond averages to give a picture of what a sample is like. Consider real life ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New ...

When working with a quantitative data set, one of the first things we want to know is what the "typical" element of the set looks like, or where the middle of the set is. We do this by finding a ...

For example, one could calculate the realized volatility for the equity market in March of 2003 by taking the standard deviation of the daily returns within that month. One could look at the ...