Standard Deviation
Standard deviation is a statistical measure of how returns vary around the mean, used to quantify the variability (volatility) of an asset or portfolio.
Example: If a fund has an average annual return of 6% over the past five years and a standard deviation of 10%, returns have varied around the mean with notable fluctuations; about two-thirds of observed annual returns would be expected to lie between -4% and 16% assuming approximate normality.
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