Standard Deviation

Definition: The standard deviation of a stock measures its volatility.  In investing, volatility is synonymous with risk, so one could say standard deviation measures total risk.

StockJargon Advice: The higher a stock's standard deviation, the higher the risk.  For example, a stock with a mean annual return of 8% and a standard deviation of 4% is less risky than one with the same return and a standard deviation of 22%.