Below is an example of calculating the standard deviation of the stock returns of Apple (Nasdaq: AAPL) over a three-month period. Step 1 : Collect daily data going back over a three-month period.

The standard deviation formula for a sample is almost the same as the formula for a population, except you subtract N by 1 in the denominator, so it's: σ = √(Σ(xi - μ)² / N-1).

Example of Using Standard Deviation Suppose a mutual fund achieves the following annual rates of return over the course of five years: 4%, 6%, 8.5%, 2%, and 4%. The mean value, or average, is 4.9%.

To figure out the standard deviation, we have to take the square root of the variance, which is 11.43 (population variance) or 12.52 (sample variance). Explain Like I'm Five ...

Learn about the Sharpe Ratio. Find out its definition, components, interpretation, practical applications and limitations in ...

The formula for standard deviation is: Source: National Institutes of Health. Where: ... Example: “Signy wanted to buy a low-volatility Canadian equity exchange-traded fund (ETF).

The formula for pooled standard deviation In the formula above, n is the sample size of the group, S squared the group variance, and k is the number of groups. This assumes the variances are ...

Last year Johnson had a 7.7 standard deviation with a 12.3 PPG, for a value of 1.60. Most of his value (fantasy value, that is) comes from his seasons of two and three years ago.

First, let's look at what a standard deviation is measuring. Consider two small businesses with four employees each. In one business, two employees make $19 an hour and the other two make $21.

Formula and Example. The Sortino ratio serves a similar purpose to the more popular Sharpe ratio, ... The denominator is the standard deviation of a portfolio's downside volatility.