# What does the standard deviation of a portfolio mean?

## What does the standard deviation of a portfolio mean?

**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 considered a good standard deviation?

For an approximate answer, please estimate your coefficient of variation (CV=**standard deviation** / mean). As a rule of thumb, a CV >= 1 indicates a relatively **high** variation, while a CV < 1 can be **considered** low. ... A "**good**" **SD** depends if you expect your distribution to be centered or spread out around the mean.

## What is a good standard of error?

What the **standard error** gives in particular is an indication of the likely accuracy of the sample mean as compared with the population mean. The smaller the **standard error**, the less the spread and the more likely it is that any sample mean is close to the population mean. A small **standard error** is thus a **Good** Thing.

## What does a standard error of 2 mean?

The **standard deviation** tells us how much variation we can expect in a population. We know from the empirical rule that 95% of values will fall within **2 standard** deviations of the **mean**. ... 95% **would** fall within **2 standard errors** and about 99.

## What is standard error of mean in statistics?

The **standard error** is a **statistical** term that measures the accuracy with which a sample distribution represents a population by using **standard deviation**. In **statistics**, a sample **mean** deviates from the actual **mean** of a population; this **deviation** is the **standard error** of the **mean**.

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