9-11 Measuring risk Variance -Average value of squared deviations from mean. A measure of volatility Standard Deviation -Average value of squared deviations from mean. a measure of volatility Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 9- 11 Irwin/McGraw-Hill Measuring Risk Variance - Average value of squared deviations from mean. A measure of volatility. Standard Deviation - Average value of squared deviations from mean. A measure of volatility