What is the standard deviation of a normal distribution?

What is the standard deviation of a normal distribution?

The standard normal distribution is a normal distribution with a mean of zero and standard deviation of 1.

How does Standard Deviation affect normal distribution?

The standard deviation is a measure of variability. It defines the width of the normal distribution. The standard deviation determines how far away from the mean the values tend to fall.

What does standard deviation mean in statistics?

A standard deviation is a statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance. ... If the data points are further from the mean, there is a higher deviation within the data set; thus, the more spread out the data, the higher the standard deviation.

Why is standard deviation better than variance?

Standard deviation and variance are closely related descriptive statistics, though standard deviation is more commonly used because it is more intuitive with respect to units of measurement; variance is reported in the squared values of units of measurement, whereas standard deviation is reported in the same units as ...

What is a high standard deviation value?

A standard deviation (or σ) is a measure of how dispersed the data is in relation to the mean. Low standard deviation means data are clustered around the mean, and high standard deviation indicates data are more spread out.

What is standard deviation of portfolio?

Expected Return vs. Standard Deviation: An Overview The expected return of a portfolio is the anticipated amount of returns that a portfolio may generate, whereas the standard deviation of a portfolio measures the amount that the returns deviate from its mean.

What is the standard deviation of a fully diversified portfolio?

d. With 100 stocks, the portfolio is well diversified, and hence the portfolio standard deviation depends almost entirely on the average covariance of the securities in the portfolio (measured by beta) and on the standard deviation of the market portfolio....Answers to Practice Questions.
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