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Standard deviation is a measure of total risk, or both systematic and unsystematic risk. Unsystematic risk can be diversified away, systematic risk cannot and is measured as Beta.

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โˆ™ 2013-03-29 14:59:12
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Q: Does standard deviation measure systematic or unsystematic risk?
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Related questions

Do units of measure follow the standard deviation?

Units of measure do follow the standard deviation.


What is standard deviation used for?

Standard deviation is a measure of the spread of data.


What are the uses of standard deviation?

The standard deviation is a measure of the spread of data.


What is the minimum data required for standard deviation?

The standard deviation is a measure of how spread out the numbers are. Three points is needed to calculate a statistically valid meaningful standard deviation.


Why standard deviation is best measure of dispersion?

standard deviation is best measure of dispersion because all the data distributions are nearer to the normal distribution.


What does one standard deviation mean?

Standard deviation is a measure of variation from the mean of a data set. 1 standard deviation from the mean (which is usually + and - from mean) contains 68% of the data.


How do you use standard deviation?

Standard deviation is a measure of how spread out a set of numbers are from each other. It has a variety of uses in statistics.


What does standard deviation tell about distribution and varity?

It is a measure of the spread of the distribution. The greater the standard deviation the more variety there is in the observations.


How do you calculation standard deviation of concrete cubes?

You cannot calculate standard deviation for objects such as concrete cubes - you can only calculate standard deviation for some measure - such as side length, surface area, volume, mass, alkalinity or some other measure.


Does standard deviation and mean deviation measure dispersion the same?

No. The average of the deviations, or mean deviation, will always be zero. The standard deviation is the average squared deviation which is usually non-zero.


What is standard deviation in psychology?

Standard deviation is a statistical measure. It may be used in psychology but is not restricted to that subject. It is a measure of the spread of the distribution of values of some attribute that is being measured.


Which measure of varartion is preferred when the mean is used as the measure of center?

standard deviation


Can standard deviation be a measure of precision?

Yes SD is ofcourse measure of precision


How do you measure the risk of a single asset?

The total risk of a single asset is measured by the standard deviation of return on asset. Standard deviation is the square root of variance. To measure variance, you must have some distribution/ possibility of asset returns. However, the relevant risk of a single asset is the systematic risk, not the total risk. Systematic risk is the risk that cannot be diversified away in a portfolio. Systematic risk of an asset is measured by the Beta. Beta can be found using Regression (between market return and asset's return) or Covariance formula.


Will increasing the frequency of scores in the tails of a distribution effect the standard deviation How or Why?

Yes. It will increase the standard deviation. You are increasing the number of events that are further away from the mean, and the standard deviation is a measure of how far away the events are from the mean.


Does standard deviation give a measure of accuracy or precision?

precision


What is the standard deviation?

The standard deviation of a set of data is a measure of the spread of the observations. It is the square root of the mean squared deviations from the mean of the data.


What does the standard deviation tell us?

standard deviation is the square roots of variance, a measure of spread or variability of data . it is given by (variance)^1/2


What is mean and standard deviation?

They are statistical measures. For a set of observations of some random variable the mean is a measure of central tendency: a kind of measure which tells you around what value the observations are. The standard deviation is a measure of the spread around the mean.


Why standard deviation is better measure of variance?

1. Standard deviation is not a measure of variance: it is the square root of the variance.2. The answer depends on better than WHAT!


What do the variance and the standard deviation measure?

They are measures of the spread of distributions about their mean.


Which measure of variation is appropriate when using the mean?

The variance or standard deviation.


Why does the standard deviation get smaller as the individual in a group score more similarly on a test?

Because the standard deviation is a measure of the spread in scores. As individuals score more similarly, the spread gets smaller. Because the standard deviation is a measure of the spread in scores. As individuals score more similarly, the spread gets smaller. Because the standard deviation is a measure of the spread in scores. As individuals score more similarly, the spread gets smaller. Because the standard deviation is a measure of the spread in scores. As individuals score more similarly, the spread gets smaller.


What is the relation between quartile deviation and standard deviation?

Strictly speaking, none. A quartile deviation is a quick and easy method to get a measure of the spread which takes account of only some of the data. The standard deviation is a detailed measure which uses all the data. Also, because the standard deviation uses all the observations it can be unduly influenced by any outliers in the data. On the other hand, because the quartile deviation ignores the smallest 25% and the largest 25% of of the observations, there are no outliers.


Which type of measure of dispersion is mostly used standard deviation or variance?

They are effectively the same but the standard deviation is more popular because the units of measurement are the same as those for the variable.