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#reading-8-statistical-concepts-and-market-returns
An important attribute of the standard deviation as a measure of spread is that if the mean and standard deviation of a normal distribution are known, it is possible to compute the percentile rank associated with any given score.
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Subject 6. Measures of Dispersion
variance indicates the adequacy of the mean as representative of the population by measuring the deviation from expectation. Basically, the variance and the standard deviation are measures of the average deviation from the mean. <span>An important attribute of the standard deviation as a measure of spread is that if the mean and standard deviation of a normal distribution are known, it is possible to compute the percentile rank associated with any given score. In a normal distribution, about 68% of the scores are within one standard deviation of the mean and about 95% of the scores are within two standards deviations of the mean.


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