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.

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.