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However, it is pertinent to note that Standard Deviation is based on historical data, and Past results may predict future results. Still, they may also change over time and, therefore, can alter the Standard Deviation, so one should be more careful before making an investment decision based on the same. A high portfolio standard deviation highlights that the portfolio risk is high, and the return is more volatile and, as such, unstable. These are meant for general information only or to meet statutory requirements or disclosures. The information does not constitute investment or financial advice or advice to buy or sell, or to endorse or solicitation to buy or sell any securities or other financial instrument for any reason whatsoever.

Nothing on the Website or information is intended to constitute legal, tax or investment advice, or an opinion regarding the appropriateness of any investment or a solicitation of any type. You are therefore advised to obtain your own applicable legal, accounting, tax or other professional advice or facilities before taking or considering an investment or financial decision. In a perfect world, all investment prices would move steadily in an upward direction with little deviation from that nice, smooth path. Low-risk mutual funds, such as debt schemes, generally have a lower standard deviation when compared to equity funds which involve higher risk. You cannot decide if the standard deviation of a fund is high or low unless you compare it to other schemes in the same category.

Low-risk schemes such as debt mutual funds tend to have a low standard deviation. While funds in the equity category will have a higher standard deviation in comparison to the debt category. Simply averaging out the standard deviations, is no answer to understanding the market volatility of the portfolio. In such cases, it makes little sense to pay higher fees for professional management when you can get the same or better results from an index fund. According to Morningstar, a mutual fund with an R-squared value between 85 and has a performance record that is closely correlated to the index. A fund rated 70 or less typically does not perform like the index. As useful as these measurements are when considering a stock, bond, or mutual fund investment, volatility risk is just one of the factors you should be considering that can affect the quality of an investment.

For fixed-income securities and bond funds, the benchmark is the U. An alpha of 1. Correspondingly, an alpha of The commonplace deviation is also necessary in finance, where the usual deviation on the rate of return on an funding is a measure of the volatility of the investment. Standard deviation is statistics that basically measure the distance from the imply, and calculated because the sq. Root of variance by willpower between each information point relative to imply.

Basically, the more spread out the data, the greater the difference is from the norm. The more securities held in a portfolio, and the more variety of types of securities, the less each individual security and its standard deviation matter to the whole portfolio. In addition to its numerous other useful applications, Bollinger Bands are used as an indicator of market volatility. When a security has experienced a period of great volatility, the bands are wide apart. It means that if the benchmark gives a positive return, the fund will give a -ve return. In this case, Fund B is a better choice because Fund B generates more return for every unit of risk undertaken.

Within debt funds, the SD of Liquid Fund will be lower in comparison to Dynamic Bond Fund which takes duration bet, or Gilt Fund which is susceptible to interest rate risk. We defined alpha as the excess return of the fund over and above the benchmark returns. Well, that is true, but we need to make a few small changes to that equation and include our newly introduced friend, beta. The risk-free return is the maximum return you can generate without taking any risk. By risk I mean — market risk, credit risk, interest rate risk, and unsystematic risk.

However, it is to be remembered that it is not good or bad, but an indicator of the data spread. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol. An investor who would prefer a less bumpy ride would choose Fund B. If you are even just remotely interested in American history and slot games, you will be pleased to know that the two mix perfectly together. Fort Brave uses familiar settings for players with a little experience, while keeping things simple enough for newcomers not to feel completely lost upon launching the game. The game matrix contains 5 reels with four symbol positions on each, and you can choose between 25 or even 50 paylines. Winning combinations of symbols landing on activated paylines pay a certain amount of cash, which depends on the nature of the symbols and the amount of money you are betting.

In other words, bigger bets yield bigger winnings down the line. Use the command bar at the bottom of the game screen to adjust your bet settings, and hit the play button when you feel confident enough that you have a chance to win the battle. Use the autoplay mode whenever you feel like speeding up the pace a little. The reels will simply keep on spinning on their own until you decide to switch back to the regular play mode.

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