Really simple and powerful way to analyse asset class returns. However, does the usage of standard deviation result in a self-fulfilling statistic of normal distribution pattern. I worked out 1 sigma plus and minus, and found that on an average 77% of returns lie within this range. Is this somehow a result of using standard deviation in the first place?
Looking forward to your response.
Really simple and powerful way to analyse asset class returns. However, does the usage of standard deviation result in a self-fulfilling statistic of normal distribution pattern. I worked out 1 sigma plus and minus, and found that on an average 77% of returns lie within this range. Is this somehow a result of using standard deviation in the first place?
Looking forward to your response.