Calculating Standard Deviation of a Two Asset Portfolio

Posted by Jerry Mee, CFP®

Dec 11, 2019

In this video we demonstrate calculations and keystrokes for determining the standard deviation of a two asset portfolio. We also review how to perform square root and squaring operations on the HP 12c financial calculator using reverse polish notation (RPN).

The standard deviation of a two asset portfolio helps us quantify the total risk of experiencing a return which varies from our expected return. This statistic is frequently used, both in practice and on CFP® Board’s certification exam.

Find more helpful videos on The Boston Institute of Finance's YouTube page.

Topics: HP 12c Video Tutorials, HP 10bII Video Tutorials