Q2 Pilot Paper — OpenTuition Forums

Jjohnnyn12315y ago

Hi,

Might be a silly question but can't figure it out. On question 2 of the p4 pilot paper can anyone tell me how they can turn a monthly volatility of 6.35% to an annualised rate of 22%.
Any replies appreciated.

Thanks,

((deleted)15y ago#1

because we need to turn the monthly volatility into yearly basis by:

?12 X 6.35% (ROOT 12 X 6.35%)

Jjohnnyn12315y ago#2

thanks a lot