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Hi Sir,
I have queries on the standard deviation calculation.
As per question, the annual volatility (variance) is 169%.
when we calculate the standard deviation (sd), why the answer not 1.3 but 0.13.because i use square root of the variance to find the sd, which is square root of 1.69.
but the answer is 0.13But it looks as though you have answered your own question!
Take the square root of 169, which is 13% (and 13% is the same as 0.13).
(What is happening is that the variance is actually “% squared” (despite the fact that the examiner just put a % sign). So it is really 169 x 1/100 x 1/100, which is the same as 0.0169.
The square root of 0.0169 = 0.13 )
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