Quantitative finance theory usually emphasizes variation in security prices as much, and often, more than returns. Yet information on the variation of mutual fund prices and those for electronically traded funds are harder to find in fund performance summaries.
Attached is a link to my blog with a calculator assessing this variation based on the 1, 3, 5 and 10 year annualized returns usually provided, and an interpretation of the variation which may be more accessible to the lay investor than a standard deviation.
Volatility and Investment Time Frames-Resource Tepee
| Resourcetepee |
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| Volatility and Investment Time Frames-Resource Tepee |
| Investment return data are usually easy for investors to understand but measures of volatility are harder to understand and interpret. Fund performance summaries often provide year to date returns and annualized returns for some fixed periods such as those over a year, 3 years, 5 years, 10 years or since inception. |
| View this on Resourcetepee > |
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Shankar Srinivasan
Director, Statistics
Celgene
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