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Calling all standard deviates
Old 07-27-2004, 08:41 AM   #1
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Calling all standard deviates

When I ER's I determined my risk profile. My current portfolio has a standard deviation of just north of 10. Now that I have been retired a few years I am more risk averse. I understand standard deviation equates to volatility/risk. Is 10-11 average? I like the Vanguard Star Fund and the Life Strategy both of which is under 8 I think. How real is this standard deviation stuff?

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Re: Calling all standard deviates
Old 07-27-2004, 12:06 PM   #2
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Re: Calling all standard deviates

If I remember right, one standard deviation means
that 2/3 of the time the deviation from the mean
will be within the stated value. I.E. if the mean
return of a fund is 11% with a std deviation of 8%,
then 2/3 of the time the annual return will be within
3% to 19%. Lots of samples are better than just a


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