Here is the article.
beta, standard deviation, R-squared, duration, Sharpe ratio.
In client reviews we tend to focus on standard deviation and Sharpe ratio for overall portfolio risk discussions" involving stock funds
We explain how volatility, defined by standard deviation, shapes expectations, particularly upside and downside, for future returns and how volatility can impact cash-flow decisions.
Volatility means the size of swings up and down. While two investments may have the same gains over time, or the same average gains on a yearly basis, one may notch steady returns like a bank account paying interest, while the other may have stupendous gains one year and losses the next.
I like to learn about standard deviation - a drunk who can't walk the white line.
Standard deviation. This is defined as "the square root of variance." The math is tricky but generally this measures how much an investment wanders off of its average path, like a drunk who can't walk the white line. The bigger the standard deviation, the greater the risk. "Clients can relate to this measure as they understand the real world impact of volatility on their cash-flow decisions,"
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