In Porfolio theary, In formula of standard deviation of Security and in formula of standard deviation of Market,
In denomination when to use N & when to use N-1.
If anybady knows plz guide me
thanking you in advance
jaimin
jaimin (Finance Executive) (465 Points)
23 April 2013In Porfolio theary, In formula of standard deviation of Security and in formula of standard deviation of Market,
In denomination when to use N & when to use N-1.
If anybady knows plz guide me
thanking you in advance
jaimin
CA. Abhishek Kumar Maurya
(ACA)
(490 Points)
Replied 23 April 2013
if n is less than 30 than we use n and if n is more than 30 than we use n-1 for security analysis as well as for market analysis..... However in icai examinations sometimes they use n and some times n-1 for S.D. as per degrees of freedom analysis.