Assume the monthly standard deviation of a stock is 9.40 percent. What is the an
ID: 2650850 • Letter: A
Question
Assume the monthly standard deviation of a stock is 9.40 percent. What is the annual standard deviation of the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Assume the monthly standard deviation of a stock is 9.40 percent. What is the annual standard deviation of the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Assume the monthly standard deviation of a stock is 9.40 percent. What is the annual standard deviation of the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)Explanation / Answer
Annual standard deviation = monthly standard deviation/ (T)^(1/2)
Annual standard deviation = 9.40%/(1/12)^(1/2)
Annual standard deviation = 32.56%
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