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How to Determine the Standard Deviation of your Portfolio

How do you measure the return and standard deviation for a portfolio? 

The expected return on a portfolio is the weighted average of the expected rate of return on assets, comprising the portfolio. There are two major determinants of portfolio return: expected rate of return on each asset and the relative share of each asset in the portfolio. Return for the portfolio is measured by using the following equation: E(Rx) = Σ RiPi  i=1 
Here, E(Rx) = Expected return, Ri = return and Pi = Probability. 

Return is typically done of a specific time period, such as stock ABC had a return of 4.5% in 2008. Standard deviation is determined by analyzing the past volatility of an investment product. Fluctuations in price will give a financial manager the approximate standard deviation, which will help determine the level of risk associated with an investment.

Standard deviation for the portfolio is used to measure investment risk by finding out the exact difference between the actual and standard results. It is measured as an indicated degree of uncertainty of returns. To calculate the value of standard deviation, weights to the square of each deviation by its occurrence. It is the square root of the variance.
If I would have enough knowledge about the market and its return then, I would like to calculate the returns; otherwise, I would choose the investment house, which has good market rating. 

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