Standard Deviation Definition

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	A Few Related Terms


	Beta Volatility Risk-free Rate CAPM


	Standard Deviation Term category: Stocks In 10 words or less: A statistical measure that approximates a stock's volatility.


	Definition: The standard deviation of a stock measures its volatility. In investing, volatility is synonymous with risk, so one could say standard deviation measures total risk. StockJargon Advice: The higher a stock's standard deviation, the higher the risk. For example, a stock with a mean annual return of 8% and a standard deviation of 4% is less risky than one with the same return and a standard deviation of 22%.


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