btcapital

I find that decimals work better. To answer your question the standard dievation is the square root of the "mean" which is the expected return * the probability and then sumed up ("added" )

Example:

Return Probability
10% 0.1 0.10 * 0.1 = 0.01
15% 0.3 0.15* 0.3 = 0.05
20% 0.4 0.20 *0.4 = 0.08
25% 0.2 0.25 *0.2 = 0.05
_______
18.50% is the mean or expected return


STD is the square root of the mean 18.50 squared is 4.30%

Correct me if this doesnt sound correct



Edited 1 time(s). Last edit at Tuesday, April 19, 2011 at 06:24AM by navin404.