The relationship between the standard deviation rate and the risk reward ratio

1. Risk-return rate = b * standard deviation rate, b is the risk coefficient. The standard deviation rate reflects the degree of risk of the decision-making option in a relative number. The greater the standard deviation rate, the greater the risk, in the case of different expectations.

Conversely, the smaller the standard deviation, the less risk. Although the standard deviation ratio can correctly assess the degree of investment risk, it cannot be analyzed together with risk and return. Therefore, we should calculate the risk-return ratio to evaluate.

2. The standard deviation rate (also known as: ) is a relative number that measures the risk of the option to be decided. The standard deviation indicator is widely used, especially for comparing the degree of risk of different expected value decision schemes.

Extended information: 1. Standard deviation is a relative indicator. It represents the risk included in the expected return of an asset unit. The standard deviation index can be used to compare the risk between assets with different expected returns. If the expected rate of return on the asset is the same, the standard deviation does not need to be calculated.

Standard deviation is the ratio of the standard deviation to the expected value. It is calculated as follows:

Standard deviation rate = standard deviation expected value.

2. In the case of different expectations, the greater the standard deviation, the greater the risk. For example, if an enterprise plans to invest in a complete industrial project with certain risks, there are two options: plan A and plan B: the expected value of the net present value of plan A is known to be 10 million yuan, and the standard deviation is 3 million yuan; The expected NPV of Party B's case is $12 million, and the standard deviation is $3.3 million.

3. When the expected values of the two schemes are different, the decision scheme can only rely on the relative value of the standard deviation. Standard deviation rate = standard deviation expected value. The greater the standard deviation rate, the greater the risk; Conversely, the smaller the standard deviation, the less risk.

Standard deviation rate of scheme a = 300 1000 = 30%; Standard deviation rate of scheme B = 330 1200 =. Clearly, option A is riskier than option B.

Fourth, compare the standard deviation or standard deviation rate of the calculated scheme with the preset value. If the calculated value is less than or equal to the set value, the investment risk of the scheme is acceptable, otherwise it is unacceptable.

5. The risk-reward coefficient is a measure of the risk borne by the enterprise, which is generally evaluated by professional institutions and can also be derived from the investment projects of previous years.

The standard deviation ratio is a relative number to reflect the risk degree of the decision-making scheme, in the case of different expected values, the larger the standard deviation ratio, the greater the risk, and conversely, the smaller the standard deviation, the smaller the risk. Although the standard deviation ratio can correctly evaluate the degree of investment risk, it cannot combine risk and return for analysis. Therefore, it is necessary to calculate the risk-reward ratio to evaluate.

Risk-return ratio = b * standard deviation rate b is the risk coefficient is generally given.

1. The standard deviation can reflect the degree of investment risk and is the square root of the variance. In general, the smaller the standard deviation, the less risk; Conversely, the larger the standard deviation, the greater the risk.

The limitation of the standard deviation is that it is an absolute number and is only suitable for comparing the degree of risk of the same expected value decision scheme.

2. The standard deviation rate can also reflect the degree of investment risk, but the standard deviation rate is the ratio of the standard deviation of a random variable to the expected value of the random variable.

The standard deviation ratio is a relative number to measure the total risk of an asset, in general, the larger the standard deviation ratio, the greater the risk; Conversely, the smaller the standard deviation rate, the less risk. The standard deviation ratio index has a wide range of applications, especially for the comparison of the risk degree of decision-making schemes with different expected values. Again, the expectation value can be used at the same time.

Summary. Hello Standard Deviation Ratio can directly calculate the risk-reward ratio: Yes : a. Risk-reward ratio Risk-reward coefficient Standard deviation ratio.

Hello Standard Deviation Ratio can directly calculate the risk-reward ratio: Yes : a. Risk-reward ratio Risk-reward coefficient Standard deviation ratio.

The standard deviation rate is a rate of return on investment for the slag hopper. 1. The standard deviation ratio is the ratio of the standard deviation to the expected value. 2. The calculation formula is:

Standard Deviation Rate Standard Deviation The greater the standard deviation ratio, the greater the risk. 3. (1) Expected value (probability * expected rate of return) (2) Sample variance (expected rate of return Expected value) 2 * Probability sample variance Douliang lift (expected rate of return Expected value) (n 1) (3) Sample standard deviation The square root of the sample variance (the larger the standard deviation, the greater the risk) (4) Coefficient of change (standard deviation rate) Standard deviation Expected value Extended dataThe standard deviation rate is a relative indicator. 4. It indicates the size of the risk contained in the pre-empty return per unit of an asset.

5. The standard deviation ratio indicator can be used to compare the risk size between assets with different expected returns. 6. If the expected rate of return of the asset is the same, the standard deviation ratio does not need to be calculated. 7. When the expected value of the two schemes is different, the decision-making scheme can only rely on the relative value of the standard deviation rate.

8. Standard deviation rate = standard deviation expected value, the larger the standard deviation rate, the greater the risk. Conversely, the smaller the standard deviation ratio, the less risky it is.

Formula 1: Return on investment Risk-free rate of return Risk-return rate.

Risk-reward ratio Risk-reward coefficient Standard deviation ratio.

Formula 2: Return on investment = risk-free return + (market return - risk-free return) coefficient refers to the relationship between the systematic risk of a specific risk asset and the average systematic risk of a market risk asset. Anti.

It reflects the size of the system risk of a single asset relative to the average risk of the market portfolio.

Coefficient = Correlation coefficient between individual asset and market * Standard deviation of individual asset Standard deviation of the market.

The market combination relative to its own coefficient is 1

When = 1, the degree of systemic risk of the asset is consistent with the risk of the market portfolio.

When 1, the degree of systemic risk of the asset is greater than the risk of the entire market portfolio.

When 1, the degree of systemic risk of the asset is less than the risk of the entire market portfolio.

When =0, the level of systemic risk for that asset is 0

Return on investment.

Risk-free rate of return + value-at-risk coefficient * return standard return search and missing deviation rate, then return standard deviation missed rate = (10%-6%) 8% = 50%.