Economics Stock Market Questions
The standard deviation is a statistical measure that quantifies the amount of variation or dispersion in a set of data points. It measures how spread out the values are from the mean or average value. In the context of the stock market, the standard deviation is used to assess the volatility or risk associated with a particular stock or portfolio of stocks. A higher standard deviation indicates greater price fluctuations and higher risk, while a lower standard deviation suggests more stability and lower risk.