![]() So, in the second sample, the standard deviation is 186, and in the first it is 1.6. Therefore, despite the fact that these two samples have the same average (equal to 3), they are completely different due to the fact that the second sample has randomly and strongly scattered data around the center, and the first one is concentrated near the center and ordered.īut if we need to quickly make it clear about such a phenomenon, we will not explain, as in the paragraph above, but simply say that the second sample has a very large standard deviation, and the first - a very small one. Obviously, the scatter (or scattering, or, in our case, volatility) is much larger in the second sample. Posted at 19:40h in wabash college football results 2021 by amagen tech led strip light app. But no! Let's look at the possible data options for these two samples: 1, 2, 3, 4, 5 and -235, -103, 3, 100, 250 It would seem that the same average makes these two samples the same. For example, we have 2 samples in which the arithmetic average is the same and equal to 3. This measure describes the dispersion in individual stock returns. Understanding the essence of the standard deviation is possible with an understanding of the basics of descriptive statistics. Here we explain the methodology for calculating an asset-weighted standard deviation of share returns, often also referred to as the cross-sectional standard deviation.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |