## The standard deviation is a measure of

### volatility

the amount of variation or dispersion of a set of numerical data from its mean value. It is a statistical concept that calculates the distance of individual data points from the overall mean of the dataset. The standard deviation is important in many fields, such as finance, physics, engineering, and psychology.

A low standard deviation indicates that the data points are closely clustered around the mean value, while a high standard deviation suggests that the data points are more spread out, indicating greater variability or uncertainty within the dataset. The standard deviation is commonly used in statistical analysis to determine how much the data deviates from the average, which is essential for decision-making and forecasting.

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