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Standard Deviation

In statistics and probability theory, the standard deviation (SD) (represented by the Greek letter sigma, σ) measures the amount of variation or dispersion from the average.[1]

A low standard deviation indicates that the data points tend to be very close to the mean (also called expected value); a high standard deviation indicates that the data points are spread out over a large range of values.

$\sigma = \sqrt {\mu _2 }$

Definition of 'R-Squared' (calculating Beta)

A statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. For fixed-income securities, the benchmark is the T-bill. For equities, the benchmark is the S&P 500.

statistics_notes.txt · Last modified: 2014/06/25 03:15 by root