Variance = 0.25% + 2.25% + 4.00% = 6.5% / (3-1) = 3.25% = 0.0325 If you wanted to find the standard deviation of the same dataset, you would take the square root of the variance: Variance measures ...

In this article, you'll learn the precise definition and formula ... This would result in an immediate cash inflow of $5 ($8 - $3). At expiration, the arbitrageur would have a guaranteed profit ...

QuantStats Python library that performs portfolio profiling, allowing quants and portfolio managers to understand their performance better by providing them with in-depth analytics and risk metrics.