The standard deviation of the asset will not be there if it provides the same return no matter what the economic condition is.
In statistics, the standard deviation can be understood as a measure that shows the amount of dispersion or variation in a set of values. A low standard deviation indicates that the data tends to be closer to the mean. The high standard deviation shows that the data is spread out over a wider range.
Standard deviation is essential as it helps us to understand the measurements when the data is distributed. The more the data will be distributed the more will be the standard deviation. Standard deviation is the best method of deviation as it contains most of the characteristics of an ideal measure of deviation.
When the data is the same or provides the same return as in the case of the asset means that there is no deviation in the data that we possess. In such cases, the standard deviation of such data will not be present.
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