How is standard deviation expressed?
1 Answer(s)
Satya
If you recollect the definition of SD, it's dispersion around mean. That is if SD of returns is 15% and mean return from security/portfolio is 20%, the expected return would be in the range of 20%+15% and 20%-15%. Here both the return and SD are in the same units i.e. percentage. The same is true if u measure height(unit could be cm,inch etc), distance( unit; metre, kilometre) or weight(kg, pound).
Do get back for more clarifications.
Feb 05 2013 01:17 AM
Do get back for more clarifications.