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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: Dominick who wrote (799)	2/28/2003 12:06:00 PM
From: Ira Player	Respond to of 1064

Dominick, I'll try to find some reference material. I don;t have time right now to go into detail. However, just think through a few points... If you have a normal distribution that ranges from -1 to +1, the largest number used to calculate a SD is +/- 1. However, the difference between 2 points in the original sequence used to create the 'histogram' could be +/- 2. (-1 and the next is 1 or 1 and the next is -1) Statistically, the difference will be SQRT(2) higher for the difference. Ira