How Is the Standard Deviation of Returns for Individual Common

question 107

Essay

How is the standard deviation of returns for individual common stocks or for a stock portfolio calculated?

---

Definitions:

Actual Price

The selling price at which a good or service is offered to consumers in the market.

Price Ceiling

A maximum price set by law that can be charged for a good or service, below the equilibrium price, leading to a shortage.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Immediate Effect

The instant impact or outcome that follows a specific action or decision, without significant delay.