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Selecting loss moments for a normal risk input

The calculator expects a mean loss and a standard deviation of that same loss quantity.

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Read the source column definitions

A percentage return dispersion and a currency mean loss do not form one compatible parameter pair. A reported variance also needs a square root before it can be used as standard deviation. Identify the source objects before entering numbers.

Record any loss conversion

For a fixed positive starting value and simple return, loss L=−Vr reverses the mean sign and scales standard deviation by V. Other cash-flow or nonlinear pricing constructions need their own loss definition; do not infer that setup from a tool label.

Check input readiness

Input-basis checks
FieldQuestion
MeanMean of return, profit or loss?
DispersionVariance or standard deviation?
UnitPercentage, currency or teaching units?
HorizonSame period for both moments?
LawNormal assumption or evidence?
ExposureLinear transformation or another pricing model?

Keep the estimate with the result

The calculator receives no observation dates and cannot restore missing estimator information. Retain the actual data record or clearly label assumptions before using the outputs as an empirical summary.

Further references