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Finance ABC

32. Measuring Risk: Variance and Standard Deviation

Welcome back to Finance ABC, the podcast that makes complex financial concepts clear and approachable. Today, we're focusing on how to measure risk, specifically through two fundamental tools: variance and standard deviation. If you’ve been investing or are just beginning to explore financial concepts, you've probably heard these terms before, especially when people talk about investment volatility. They’re essential tools for understanding risk, and once you know how they work, you’ll have a much better grasp of what it means when we say an investment is “high-risk” or “low-risk.”