Learn what active risk is and how to calculate it. Understand the methods to evaluate active risk in portfolios and explore examples of funds outperforming benchmarks.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

For a given data set, standard deviation measures how spread out the numbers are from an average value. This measurement of average variance has a prominent place in many fields related to statistics, ...

You're currently following this author! Want to unfollow? Unsubscribe via the link in your email. Follow Andy Kiersz Every time Andy publishes a story, you’ll get an alert straight to your inbox!

For example, suppose that the manufacturing process described in the previous example produces engines whose weights are normally distributed with a mean of 1250 and a standard deviation of 12. The ...

In response to my article, Is the Stock Market Too Concentrated?, which relied upon standard-deviation calculations to assess investment risk, a reader wrote: “My problem [with your argument] is ...

The effects of rising interest rates continue to hit markets and none more so than in the mortgage sector. The amount of selling lately, for example, in Annaly Capital Management Inc. NLY is ...

The following data set (WIRE) contains breaking strength measurements recorded in pounds per inch for 25 samples from a metal wire manufacturing process. The subgroup sample sizes vary between 3 and 7 ...