ACCA p4 value at risk video in opentuitionForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › ACCA p4 value at risk video in opentuitionThis topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts June 2, 2018 at 3:43 pm #455532 thomas1212MemberTopics: 45Replies: 16☆☆ in ACCA p4 value at risk video in opentuitionwhat is the reason behind squaring standard deviation(=SD) ?why is it SD^2 = 6 x SD^2why can’t we just multiply 6 x SD(standard deviation) to get the standard deviation of 6 years ??opentuition video in value at risk does not seem to explain in detail the reason behind it…thank you in advance John ! June 2, 2018 at 5:35 pm #455573 John MoffatKeymasterTopics: 57Replies: 54648☆☆☆☆☆I do explain in the lecture – it is because we multiply variances and the variance is the standard deviation^2.However all you need to learn is the end result, which is that the SD for n years is equal to the square root of n x the annual SD.So the SD for 6 years is sq root of 6 x SD per yearAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In