Michela Buttignol / Investopedia A dataset’s sum of squares shows how dispersed the set’s data points are from its mean ... is used to calculate the variance and standard deviation of a ...

We'll outline how to calculate volatility and provide an example to serve as a ... its returns don't vary around the mean). In contrast, the standard deviation for Fund B is 2%.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...