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.

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.

Historical volatility is a long-term assessment of risk. Discover why it is important to investors and learn how to calculate volatility in Excel.

How to Calculate Volatility of a Stock Calculate an asset's potential for value changes based on historical performance.

How to calculate average stock returns in Excel In the following example, I'll calculate the returns for Microsoft stock using historical prices and dividends. The first step is to get organized.