Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

Discover how standard deviation calculates investment risk and market volatility, helping investors make informed decisions.

An asset's standard deviation tells you how much its returns vary from its average. You can quickly calculate or look up the standard deviation of different assets. A high standard deviation can ...

Marshall Hargrave is a stock analyst and writer with 10+ years of experience covering stocks and markets, as well as analyzing and valuing companies. Dr. JeFreda R. Brown is a financial consultant, ...