Calculate and interpret target downside deviation.
Target downside deviation or semideviation is a measure of downside risk.
Calculating target downside deviation is similar to calculating standard
deviation, but in this case, we choose a target against which to measure each
outcome and only include outcomes below that target when calculating the
numerator.
The formula for target downside deviation is:
Note that the denominator remains the sample size n minus one, even
though we are not using all the observations in the numerator.
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