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Notices
A
Ashok (not verified)
29th August 2012 | 9:01am

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.