Saving, Managing Debt, and Budgeting

Risk / Reward

Why is risk a standard deviation?

As we compare how a potential investment performs against a benchmark, and how far this performance deviates from a norm, the risk can be expressed mathematically, indicating how precarious the investment may be. In other words, the further from the norm, the riskier the investment.


This is a web preview of the "The Handy Investing Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App