Question

You find a particular stock has an annual standard deviation of 55 percent. What is the standard deviation for a two-month period

Answer 1

Answer:

2 month standard deviation = 22.45%

Explanation:

Annual standard deviation = 55%

2 month standard deviation = Annual standard deviation / $\sqrt{12/2}$

2 month standard deviation = 55% / $\sqrt{6}$

2 month standard deviation = 55% / 2.44948974278

2 month standard deviation = 0.55 / 2.44948974278

2 month standard deviation = 0.224536559755416

2 month standard deviation = 22.45%