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Dispersion

   Also found in: Dictionary/thesaurus, Medical, Encyclopedia, Wikipedia, Hutchinson 0.03 sec.
Dispersion
A term used in statistics that refers to the location of a set of values releative to a mean or average level.

Notes:
In finance, dispersion is used to measure the volatility of different types of investment strategies. Returns that have wide dispersions are generally seen as more risky because they have a higher probability of closing dramatically lower than the mean. In practice, standard deviation is the tool that is generally used to measure the dispersion of returns.


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