Calculate the standard deviation of the historical returns compared to the mean determined in Step 3. In Excel, this can be achieved by using the STDEV function.

Learn how to calculate Value at Risk (VaR) to effectively assess financial risks in portfolios, using historical, variance-covariance, and Monte Carlo methods.

A stock's historical variance measures the difference between the stock's returns for different periods and its average return. A stock with a lower.

Understanding STDEV Add together all the cash flows you have put in the spreadsheet to calculate a total. Divide the total by the number of historical entries to calculate the mean average cash flow.