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Why standard deviation is less more preferable?

Why standard deviation is less more preferable?

by Nabia Nasir -
Number of replies: 2

standard deviation is a measure of the amount of variation or dispersion of a set of values. A low standard deviation indicates that the values tend to be close to the mean (also called the expected value) of the set, while a high standard deviation indicates that the values are spread out over a wider range.


If the standard deviation is less that's mean there is lesser change that the actual return will be ways from the expected return.


In reply to Nabia Nasir

Re: Why standard deviation is less more preferable?

by esmot ara -


A standard deviation is a statistic that measures the disperion of a data set relative to its mean.

If the standard deviation is less that's mean there is lesser change that the actual return will be ways from the expected return.

A low standard deviation indicates that the data points tend to be very close to the mean; a high standard deviation indicates that the data points are spread out over a large range of values. A useful property of standard deviation is that, unlike variance, it is expressed in the same units as the data.