You find that the annual standard deviation of a share's returns is equal to 25%. For a 3-year holding period the standard deviation of your total return would equal ________.
A)75%
B)25%
C)43%
D)55%

Question

Quizplus · Accepted Answer

The standard deviation of returns over multiple periods is calculated by multiplying the annual standard deviation by the square root of the number of periods. For a 3-year period, it is 25% * √3 ≈ 43%.

You Find That the Annual Standard Deviation of a Share's