Step 4: Calculate standard deviation of the returns using the STDEV function. Note: The average and standard deviation are expressed as percentages, while the variance is a decimal number.

Learn the standard deviation formula, how to calculate it, and its importance in data analysis. Step-by-step guide with examples.

Key Points Use Excel to calculate daily returns and standard deviation to gauge stock volatility. Annualize volatility by multiplying daily standard deviation by the square root of 252.