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:

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor, in contrast to fixed costs which remain constant regardless of output.

Total Cost

The total of all costs associated with the creation of goods or services, encompassing both fixed and variable expenses.

Average Variable Cost

Average Variable Cost is the total variable costs (costs that change with the level of output) divided by the quantity of output produced, representing the cost of producing one additional unit of goods or services.

Marginal Cost

Expenses related to the production of an additional unit of any good or service.