How to calculate revenue and expense variance to the budget Before analyzing what budget variances mean, they must first be calculated.

Learn how to calculate Value at Risk (VaR) to effectively assess financial risks in portfolios, using historical, variance-covariance, and Monte Carlo methods.

Mean-variance analysis enables investors to construct a portfolio of assets that maximizes expected return for a given level of risk. In this framework, risk is defined by the variance of returns.

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.

The following article will show you, step-by-step, how to calculate the historical variance of stock returns with a detailed example.