Learn the standard deviation formula, how to calculate it, and its importance in data analysis. Step-by-step guide with examples.

How to Calculate Standard Deviation of Cash Flows in Excel. When reviewing cash flow data for your small business, knowing the standard deviation can help you determine if the numbers are out of ...

Pooled standard deviation is a useful tool when analyzing data sets. It is especially helpful when you’ve taken the time to properly weigh your standard deviations so everything is in balance.

Annualized volatility = standard deviation (volatility) multiplied by the square root of the periods in the year. For example, you might calculate the volatility of daily stock returns.

Key Points Use Excel to calculate daily returns and standard deviation to gauge stock volatility. Annualize volatility by multiplying daily standard deviation by the square root of 252.