Hence, the formula: Expected Portfolio Return ... to get the expected result of your portfolio. In order to calculate standard deviation, figure out the mean or the average in the data set.

You can calculate standard deviation of an asset in a spreadsheet with a series of daily closing values. Standard deviation assumes normal distribution which may not reflect true market behaviors.

How to calculate standard deviation using the defining formula is explained. Discuss with students the need to go beyond averages to give a picture of what a sample is like. Consider real life ...