Discover how to evaluate risk in investments using Sharpe, Treynor ratios, alpha, and beta for better portfolio performance ...

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Chip Stapleton is a Series 7 and Series 66 license holder, CFA ...

Standard deviation is a metric that shows the variability of a security’s returns over time. It can be used to gauge volatility based on past performance and compare a future return to past returns.

In response to my article, Is the Stock Market Too Concentrated?, which relied upon standard-deviation calculations to assess investment risk, a reader wrote: “My problem [with your argument] is ...

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