The Greater the Standard Deviation of an Investment the
In taking all this to mind investors can assume that a low standard deviation points to a less risky investment while a greater variance and standard deviation reflects a higher risk stock. The greater the standard deviation the lower the risk. Employee Key Agreement Form Awesome Employee Key Holder Agreement Template Agreement List Of Jobs Professional Templates Therefore an investment with a higher standard deviation will tend to have greater variations from its average performance than an investment with a lower standard deviation. . The greater the degree of dispersion or variance in annual returns the higher the standard deviation and risk. Heres what all this means when applied to typical market fluctuations. Expected rate of return from the portfolio less than the expectedrate of return from either investment held alone. Greater is the chance that the realized return will be negative. The smaller an investments stan...