Std Deviation Portfolio Formula. If you have already covered the entire sample data through the range in number1 argument then no need. Wheres k a s k b s k c are standard deviation of stock a b and c respectively in the portfolio.
Standard deviation of portfolio. So it would be equal to 0 008438 0 5 0 09185 9 185. σ p w a 2 σ a 2 w b 2 σ b 2 2w a w b σ a σ b ρ ab 1 2.
Now we can compare the portfolio standard deviation of 10 48 to that of the two funds 11 4 8 94.
In case of three assets the formula is. Optional argument it is a number of arguments from 2 to 254 corresponding to a sample of a population. Portfolio variance 0 8 0 16 0 2 0 25 2 0 8 0 2 0 16 0 25 0 6 then we use the square root of the variance to get the standard deviation. Compulsory or mandatory argument it is the first element of the sample of a population.
