Average Standard Deviation | Formula Calculation | Definition

Average Standard Deviation | Formula

Average Standard Deviation | Formula Calculation

The square root of the arithmetic mean of the square of the deviations from the average value for a set of observations.

In Russell Style Classification (RSC), average standard deviation is calculated as follows:

Formula for Average Standard Deviation

Where

Equals

s

Average standard deviation

__
R

Average return over T time periods

Rt

Return at time t

T

Total number of time periods


For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

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