If a financial asset has a historical variance of 4% squared,then its standard deviation must be 16%.

Name: If a financial asset has a historical variance of 4% squared,then its standard deviation must be 16%.
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The variance of a financial asset is equal to the standard deviation squared, not the other way around. Therefore, if a financial asset has a historical variance of 4% squared, its standard deviation would be the square root of 4% squared, which is 4%.

If a Financial Asset Has a Historical Variance of 4