Read These Chapter 5. Discrete Probability Distributions in the textbook: 5.1 The Probability Distribution for a Discrete Variable (pp. 186-188) It may be a good idea to work on your own to calculate ...

The basic mathematical concepts of standard deviation and variance are useful to investors. Compare variance versus standard deviation and calculate each.

Determination There are several practical ways to calculate the mean and standard deviation. Scientific calculators typically come with a built-in program for both the mean and standard deviation.

Variance is a measurement of the spread between numbers in a data set. Investors use the variance equation to evaluate a portfolio’s asset allocation.