Standard deviation is a metric that shows the variability of a security’s returns over time. It can be used to gauge volatility based on past performance and compare a future return to past returns.

Discover normal distribution—a critical concept in finance—and its key properties, formula, and real-world applications.

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Vikki Velasquez is a researcher and writer who has ...

Standard deviation is a widely used metric to ascertain the investment risk of mutual funds. The concept of Standard Deviation becomes important when you invest in a market-linked product like mutual ...

In response to my article, Is the Stock Market Too Concentrated?, which relied upon standard-deviation calculations to assess investment risk, a reader wrote: “My problem [with your argument] is ...