What Is Standard Deviation? (Series 7 and Series 65 Exam)
Standard deviation measures how much an investment’s returns vary from its average return. It is a key measure of total risk and volatility — and one of the most commonly confused topics on the SIE and Series 7 exams. Higher standard deviation means less predictable returns. Lower means more stable. Know the difference between standard deviation (total risk) and beta (market risk) — both are tested.
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