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Investments glossary

Dispersion

Dispersion is a statistical term that describes the size of the distribution of values expected for a particular variable. Dispersion can be measured by several different statistics, such as range, variance, and standard deviation. In finance and investing, dispersion usually refers to the range of possible returns on an investment, but it can also be used to measure the risk inherent in a particular security or investment portfolio. It is often interpreted as a measure of the degree of uncertainty, and thus, risk, associated with a particular security or investment portfolio.

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