Hi Sir
If variance is 12%, how do i convert to standard deviation ?
must I square root ( 12/100) ?
If question state the annual volatility (variance) is 169% what does it mean? and how do I derive the standard deviation?
hope u can help me clarify. Thanks.
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Standard deviation and variance
12y ago#1The standard deviation is the square root of the variance.
So.....if the variance is 169% then the standard deviation is the square root of this which is 13% (or 0.13)
(Just in case one thing is confusing you - strictly the variance is not a % but a % squared :-). However, don't worry about this in the exa,!)
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