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Technology Stocks : Semi Equipment Analysis
SOXX 309.40+1.0%Dec 5 4:00 PM EST

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To: MrGreenJeans who wrote (42764)1/16/2009 2:17:43 PM
From: Pam3 Recommendations  Read Replies (1) of 95530
 
Volatility is the other name for risk

Not true.

Volatility is neither good or bad.

It is just present.


In the world of finance, standard deviation is used to represent the risk of a security or a portfolio of securities. Standard deviation is a measure of volatility. The basic premise is- the more a security's (or a portfolio of securities) returns vary from the security's mean return (or the portfolio's mean return), the more volatile that security is (or the portfolio is)! So, standard deviation doesn't measure the risk per se but is a good proxy for it and is predominantly accepted in the measurement of risk or quantifying it.
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