Skip to main content
Trading Terms

Normal Distribution

The standard deviation measures the variability of net returns around the average. In statistical testing, simulated net returns are assumed to follow a specific distribution. When drawn from a normal distribution, both low and high returns have an equal probability, with the average net return being the most likely in a quarter. The standard deviation is a measure of the extent to which net returns deviate from the average.

Related terms

Stationarity

Understand the meaning and definition of Stationarity in the context of stock market, trading, and investments.

MORE
Shareholder of Record

Understand the meaning and definition of Shareholder of Record in the context of stock market, trading, and investments.

MORE
Short (oversold) position

Understand the meaning and definition of Short (oversold) position in the context of stock market, trading, and investments.

MORE
DAF

Understand the meaning and definition of DAF in the context of stock market, trading, and investments.

MORE
Bid/tender bond

Understand the meaning and definition of Bid/tender bond in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91