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sample standard deviation

pcunniffpcunniff MilwaukeePosts: 29 Associate

For those using Kaplan - can someone explain why the book example on page 117 of book 1 takes the squared root of the sample variance to get your answer? On the question below ... you are using the formula from the book. Trying to understand when to use the formula from the book vs simply taking the sq root.


A sample of returns for four randomly selected assets in a portfolio is shown below:

Asset Return (%)

A 1.3

B 1.4

C 2.2

D 3.4


A)

0.88%.


B)

1.13%.


C)

0.97%.

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