If a stock is just as likely to move up or down, it has a high standard deviation.

Question

Quizplus · Accepted Answer

A stock being equally likely to move up or down indicates it has a high degree of uncertainty or volatility, but not necessarily a high standard deviation. Standard deviation measures the amount of variation or dispersion from the average. A stock could move very slightly up or down with equal probability and still have a low standard deviation if those movements are close to its average.

If a Stock Is Just as Likely to Move Up