You find that the annual standard deviation of a stock'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 for a multi-year period is calculated by multiplying the annual standard deviation by the square root of the number of years: 25% * √3 ≈ 43%.

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