Standard Deviation
topic on 1 show · 3 statements across 2 episodes
3 statements about Standard Deviation, every show
Williams: Standard deviation rarely reflects the actual risks institutional investors face
“So the expected return being a point estimate May connect well into, I want to cover expenses, and I want to grow, and I want to pay fees, but the risk, meaning of variance and their standard deviation, only by some strange coincidence would be connected to th…”
Mauboussin: Market Return Dispersion Widens When Unsophisticated Investors Enter The Fray
“I think when you see episodes of people who are less sophisticated getting involved with reasonable sums of money, that's probably the case where you could get that standard deviation blow back out.”
Mauboussin: Manager Return Dispersion Spiked During Dot-Com Era Before Reverting
“So that standard deviation had been going down, down, down, sixties, seventies, eighties, into the nineties. And then there was a massive reversal where the standard deviation went way back up around the dot com period. And so there's a spike, and then it come…”