Portfolio Standard Deviation Formula Excel. Population standard deviation takes into account all of your data points n. The portfolio standard deviation is 13 6.
If you equally weight the assets then the formula becomes. This means that most data points range is within 2 7 of the average value i e between 3 7 to 9 1 either side of the average value of 6 4. Where r k a k b r k a k c r k b k c are the correlation between stock a and stock b stock a and stock c stock b and stock c respectively.
Wheres k a s k b s k c are standard deviation of stock a b and c respectively in the portfolio.
So it would be equal to 0 008438 0 5 0 09185 9 185. Type in the standard deviation formula. Where r k a k b r k a k c r k b k c are the correlation between stock a and stock b stock a and stock c stock b and stock c respectively. Standard deviation excel 2 7.
