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Rasek [7]
4 years ago
15

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

d
Business
1 answer:
ivann1987 [24]4 years ago
8 0

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%

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