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difference standard deviation of portfolio
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∙ 14y ago
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What is the difference between standard error of mean and standard deviation of means?
Standard error of the mean (SEM) and standard deviation of the mean is the same thing. However, standard deviation is not the same as the SEM. To obtain SEM from the standard deviation, divide the standard deviation by the square root of the sample size.
What are the assumptions of standard deviation?
The standard deviation is the standard deviation! Its calculation requires no assumption.
Why the standard deviation of set of data will always be greater than zero?
The standard deviation is always be equal or higher than zero. If my set of data is limited to whole numbers, all of which are equal, the standard deviation is 0. In all other situations, we first calculate the difference of each number from the average and then calculate the square of the difference. While the difference can be a negative, the square of the difference can not be. The square of the standard deviation has to be positive, since it is the sum of all positive numbers. If we calculate s2 = 4, then s can be -2 or +2. By convention, we take the positive root.
What is the square of the standard deviation called?
The square of the standard deviation is called the variance. That is because the standard deviation is defined as the square root of the variance.
A standard normal distribution has a mean of and standard deviation of?
Mean 0, standard deviation 1.
How can he return and standard deviation of a portfolio be determined?
How can the return and standard deviation of a portfolio be deteremined
Why we calculate standard deviation and quartile deviation?
we calculate standard deviation to find the avg of the difference of all values from mean.,
What is the difference between standard error of mean and standard deviation of means?
Standard error of the mean (SEM) and standard deviation of the mean is the same thing. However, standard deviation is not the same as the SEM. To obtain SEM from the standard deviation, divide the standard deviation by the square root of the sample size.
Difference between beta and standard deviation?
* * *
What is the difference between standard deviation and mean?
The mean is the average value and the standard deviation is the variation from the mean value.
What is the difference between standard error and standard deviation?
Standard error is the difference between a researcher's actual findings and their expected findings. Standard error measures the accuracy of one's predictions. Standard deviation is the difference between the results of one's experiment as compared with other results within that experiment. Standard deviation is used to measure the consistency of one's experiment.
How is standard deviation different from mean absolute decation?
If I have understood the question correctly, despite your challenging spelling, the standard deviation is the square root of the average of the squared deviations while the mean absolute deviation is the average of the deviation. One consequence of this difference is that a large deviation affects the standard deviation more than it affects the mean absolute deviation.
How do you calculate risk on a two asset portfolio?
For a two-asset portfolio, the risk of the portfolio, σp, is: 2222p1122112212222p11221212121212σ=wσ+wσ+2wσwσρorσ=wσ+wσ+2wwcovcov since ρ=σσ where σi is the standard deviation of asset i's returns, ρ12 is the correlation between the returns of asset 1 and 2, and cov12 is the covariance between the returns of asset 1 and 2. Problem What is the portfolio standard deviation for a two-asset portfolio comprised of the following two assets if the correlation of their returns is 0.5? Asset A Asset B Expected return 10% 20% Standard deviation of expected returns 5% 20% Amount invested $40,000 $60,000
How do you calculate risk on a two-asset portfolio?
For a two-asset portfolio, the risk of the portfolio, σp, is: 2222p1122112212222p11221212121212σ=wσ+wσ+2wσwσρorσ=wσ+wσ+2wwcovcov since ρ=σσ where σi is the standard deviation of asset i's returns, ρ12 is the correlation between the returns of asset 1 and 2, and cov12 is the covariance between the returns of asset 1 and 2. Problem What is the portfolio standard deviation for a two-asset portfolio comprised of the following two assets if the correlation of their returns is 0.5? Asset A Asset B Expected return 10% 20% Standard deviation of expected returns 5% 20% Amount invested $40,000 $60,000
What are the assumptions of standard deviation?
The standard deviation is the standard deviation! Its calculation requires no assumption.
What is best measure of risk for an asset held in isolation and which is the best measure for an asset held in a diversified portfolio?
Standard deviation; correlation coefficient
What does the sample standard deviation best estimate?
The standard deviation of the population. the standard deviation of the population.
