Next video:
Loading the player...

Learn more about this statistical measure and how it affects the dispersion of returns.

Related Articles
  1. Investing

    How Mutual Funds Chasing Popular Stocks Hurt Alpha

    Learn about the Goldman Sachs research report, which concluded that mutual funds overweight holdings of stocks that are less likely to outperform benchmark indices.
  2. Investing

    Should You Buy Stock or an ETF?

    No all investment vehicles are suited for each individual investor.
  3. Investing

    R-Squared

    Learn more about this statistical measurement used to represent movement between a security and its benchmark.
  4. Trading

    Volatility's Impact On Market Returns

    Find out how to adjust your portfolio when the market fluctuates to increase your potential return.
  5. Financial Advisor

    What Is A Pip?

    Learn how this measure of change is used in trading currencies on the forex market.
  6. Investing

    Calculating the Coefficient Of Variation (CV)

    Coefficient of variation measures the dispersion of data points around the mean, a statistical average.
  7. Financial Advisor

    Understanding Basis Points

    Learn more about this frequently stated measure of stock performance.
  8. Insights

    Can Investors Trust Official Statistics?

    The official statistics in some countries need to be taken with a grain of salt. Find out why you should be skeptical.
  9. Investing

    Market's Total Return Range Lowest Since 1999

    An increasingly correlated market means that investors are feeling the pinch of lower returns all around.
  10. Investing

    Understanding Beta

    Beta is a measure of volatility. Find out what this means and how it affects your portfolio.
Hot Definitions
  1. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  2. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  3. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  4. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  5. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
  6. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
Trading Center