Standard deviation can reflect a standard to measure fund risk

Standard deviation must be used as a relative risk indicator. The ratio of standard deviation to expected value is called coefficient of variation or standard deviation, and the greater the value, the greater the risk of the project.

investment risk refers to the risk that the investor will bear for the loss or bankruptcy caused by future business and financial activities in order to achieve its investment purpose. Investment risk is the most important content of prediction and analysis when investors decide whether to invest or not. The main factors leading to investment risk are: changes in government policies, mistakes in management measures, sharp rise in the prices of important materials that form the cost of products or sharp drop in product prices, sharp rise in borrowing interest rates, etc.