A stock has a monthly standard deviation of 14.34 percent. What is the annual standard deviation?
A) 172.08%
B) 61.26%
C) 53.41%
D) 49.68%
E) 58.72%

Question

Quizplus · Accepted Answer

To get the annual standard deviation, we need to multiply the monthly standard deviation by the square root of 12 (since there are 12 months in a year). 
Annual standard deviation = Monthly standard deviation x √12
= 14.34% x √12
= 14.34% x 3.4641
= 49.68%
Therefore, the answer is D) 49.68%.

A Stock Has a Monthly Standard Deviation of 14