Learn the standard deviation formula, how to calculate it, and its importance in data analysis. Step-by-step guide with examples.

How to calculate Standard Deviation in Excel The Standard Deviation is a term used in statistics. The term describes how much the numbers if a set of data vary from the mean.

Understanding standard deviation means first understanding variance because standard deviation, mathematically speaking, is the square root of variance.

Learn the basics of calculating and interpreting standard deviation, and how it is used to measure and determine risk in the investment industry.

Key Points Use Excel to calculate daily returns and standard deviation to gauge stock volatility. Annualize volatility by multiplying daily standard deviation by the square root of 252.

The equation for the standard error of the mean is the sample standard deviation divided by the square root of the sample size.