Standard Deviation of Monthly Returns

Formula: Each monthly rate of return = ((VAMI at end of month / VAMI at beginning of month) - 1)

Standard deviation = SQRT ((Sum(monthly ROR - average monthly ROR) ^ 2)) / # of months)

Note: You are finding the square root of the sum of the squares of the differences.

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Related Terms:

• Standard Deviation Monthly Returns definition
• Fixed Income Diversified definition
• Hurdle Rate definition
• Equity Hedge definition
• Sharpe Ratio definition

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