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    Drasul's Avatar
    Drasul Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Aug 18, 2009, 08:02 PM
    Standard Deviation & Coefficient of Variation
    Hi,

    Please explain Standard Deviation and Coefficient of Variation in finance.

    Thank you,
    David
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Aug 19, 2009, 04:41 AM
    There's no mechanical or definitional difference in SD and CoV as used in finance, vs anywhere else.

    Their applications in finance are for purposes of risk analysis, usually in terms of measuring the volatility of returns and / or asset prices.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Aug 19, 2009, 11:15 PM

    I wondered... I know what they mean from a purely statistical point of view but wasn't absolutely sure they were applied the same way in finance, so I kept my mouth shut. :-) Something else good to know.
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