Standard deviation and Value investment: Difference between pages

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''Statistics''.
An investment philosophy of buying shares or other assets which are currently trading cheaply in the market, in comparison with their values determined by fundamental analysis of the underlying business.  


(SD).
Value investment was popularised by Benjamin Graham's ''The Intelligent Investor'' (1949), which was an early and very influential book on value investing.  
 
Standard deviation measures the spread of data around their mean.
 
The standard deviation is the square root of the variance.
 
Standard deviation is used widely as a measure of risk, because it is relatively easy to calculate, and to compare and combine with the standard deviations of other variables.
 
 
Its order of magnitude is the difference, ignoring the sign, between the mean and a randomly chosen item in the population.




== See also ==
== See also ==
* [[Coefficient of variation]]
* [[Contrarian]]
* [[Correlation]]
* [[Economic value]]
* [[Correlation coefficient]]
* [[Fundamental analysis]]
* [[Deviation]]
* [[Investment]]
* [[Hedging]]
* [[Warren Buffett]]
* [[Mean]]
* [[Mean deviation]]
* [[Normal frequency distribution]]
* [[Pearson's Coefficient of Skew]]
* [[Quartile deviation]]
* [[Risk]]
* [[Sigma]]
* [[Value at risk]]
* [[Variability]]
* [[Variance]]
* [[Volatility]]


[[Category:Corporate_finance]]
[[Category:The_business_context]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]

Revision as of 15:22, 9 July 2022

An investment philosophy of buying shares or other assets which are currently trading cheaply in the market, in comparison with their values determined by fundamental analysis of the underlying business.

Value investment was popularised by Benjamin Graham's The Intelligent Investor (1949), which was an early and very influential book on value investing.


See also