Doubt in sfm problem from practice manual

Final 276 views 2 replies

Hi

              In page 7.20, problem no: 14 of Portfolio management chapter, while calculating variance why the deviation squares are multiplied by 0.5?

              Should'nt the variance be 18 and standard deviation 4.24?

Replies (2)

because it is the average taken for both the years i.e 2008 & 2009 hence deviation are multiplied by 0.5.

denominator should be 2 ( as per the formuale),instead of taking denominator as 2,he just multipiled with 0.5.just a different presentation.


CCI Pro

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