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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Value at risk
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.
It is because we can add variances but not add standard deviations, and the variance is the standard deviation squared.
