Standard Deviation

Loading the player...

Learn about how standard deviation is applied to the annual rate of return of an investment to measure the its volatility.

Related Videos

  1. The Nash Equilibrium

    Nash Equilibrium is a key concept of game theory, which helps explain how people and groups approach complex decisions. Named after renowned mathematician John Nash, the idea of Nash Equilibrium has been used in such diverse fields as international relations, psychology and economics. Game theory in general looks at how individuals or groups make choices that will in turn affect the choices of other parties.
  2. Open Market Operations Explained

    The term “open market operations” refers to a monetary policy tool in which central banks buy and sell bonds to regulate the money supply in the economy. The United States employs open market operations through the Federal Reserve Bank.
  3. The Balance Of Trade

    The balance of trade is the difference between a country’s imports and exports. A trade deficit occurs when a country buys or imports more goods from other countries than it sells or exports. A trade surplus occurs when a country sells more than it buys from foreign markets.
  4. Tariffs

    Tariffs, or customs duties, are taxes imposed on foreign goods and services. In addition to providing a country with additional revenue, tariffs offer protection to domestic producers. Imported items become more expensive, allowing businesses at home to become more competitive with their pricing.
  5. Weighted Average Cost Of Capital (WACC)

    Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
  6. Prisoner's Dilemma

    Learn more about this classic game theory scenario.

comments powered by Disqus
Marketplace
Related Slideshows
  1. 5 Steps Of A Bubble

    Learn about the five typical steps of a bubble: displacement, boom, euphoria, profit taking and panic.
  2. 6 Red Flags Of A Financial Scam

    If it sounds too good to be true, it probably is. Don't miss these signs of a money scam at work.
  3. 5 Common Mistakes New Investors Make

    Just starting out as an investor? Steer clear of these common slip-ups.
  4. 5 Metals That May Be Brighter Than Gold

    Many metals could be better investments than gold because they're more versatile and aren't as tied to investor sentiment.
  5. 4 Stages Of The Economic Cycle

    Learn about the general outline of an economic cycle to determine which sector to invest in.
  6. 8 Simple Investing Ratios You Need To Know

    Investing is a complex and often daunting experience, these equations are actually quite simple.
Trading Center