1. If a fund has earned an average return of 10% over the past five years it means that

2. Which of these investment products are likely to have the highest standard deviation of returns?

3. Standard deviation measures those deviations where

How does standard deviation help in measuring risk?

measuring risk with standard deviation (sd)

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  • Level - 6,3,8,6 BASIC

Knowing the average is not enough, it is also necessary to know how the actuals deviate from the average. Watch this video to learn more about the role of standard deviation in asssessing risk.

AUTHOR(s):Uma Shashikant

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risks in investing

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