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.