... to begin her program, but she was concerned about the stock market's inconsistency and exposing her clients to risks associated with the stocks. Analysis Table 1 : Variability of Stock Returns Standard deviation is the square root of the variance and provides an estimation of the distance away from the mean for a group of variables. Knowing a stock's standard deviation is important since it describes the stock's variability in rate of return. Therefore, the riskiness of a stock can be determined by comparing its standard deviation to the standard deviation of other assets. The standard deviation of the Vanguard 500, California REIT, Brown Group was calculated to be 4.61%, 9.23%, and 8.17% (using Excel spreadsheet), respectively. As expected, these results indicate that the two stocks carry more risk than the Vanguard 500 due to their larger standard deviation. Between the two stocks, Cal REIT carries the most risk because ...

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