Variance and standard deviation: related pages

Also called the Gaussian distribution, is the commonest of the many probability distributions.

A useful technique for financial modelling that uses random inputs to model uncertainty.

The testing of a financial model by using it on past date and then comparing the 'predictions' to what actually happened.

A measure of the risk of a portfolio; the loss that is unlikely to be exceeded in a given period of time with a given level of confidence.

Price changes in securities that are (a priori) purely random. Expected behaviour in efficient markets.

A mathematical measure of how much one number (such as a share price) is influenced by changes in another (such as an index).

The theory concerning the value and riskiness of portfolios as opposed to individual securities.

The ratio of the relative return a portfolio to the standard deviation of expected returns.

A statistical measure of the risk of holding a security; the standard deviation of expected returns on a security.