Volatility: Calculations and Risk - Finance Maths Demystified - Part 3
Dive deeper into finance math with this exploration of volatility and standard deviation. Learn how to apply these concepts in the real world, see how they apply to the daily returns of the S&P 500. Learn about rules of standard deviation and how to tell when price movements are expected or unexpected. Finally, tie all this together with an overview of what risk is and how Standard Deviation is used as an indicator of risk.
00:00 - Recap
01:16 - Calculating Standard Deviation
03:40 - 68-95-99 Rule
04:34 - Modelling S&P 500 Daily Returns
08:51 - Relationship to Risk
12:00 - Variance
14:10 - Annualizing Volatility
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