Hello Sir,
for this lecture for topic value at risk
https://opentuition.com/acca/afm/risk-and-uncertainty-part-2-acca-afm-lectures/
even though the exam is not statistical but I'm wondering why n year is being square root to find the average standard deviation for n years? What is the reason behind? It just for purely understanding, Thank you.
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Value at risk
7y ago#1It is because we can add variances but not add standard deviations, and the variance is the standard deviation squared.
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