The formula for standard deviation (σ) is σ = √Σ Pi (Ri - E(R))^2, where Pi is the probability of outcome i, Ri is the return of outcome i, and E(R) is the expected return.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (2)

• expected return concept
• Standard deviation concept