With a Monthly Standard Deviation of a Portfolio $\sigma$ _M, What Is the Annual Standard Deviation?
A)

question 82

Multiple Choice

With a monthly standard deviation of a portfolio, $\sigma$ _M., what is the annual standard deviation?

• A) \(\sigma _ { \mathrm { M } } \times 12\)
• B) \(\sigma _ { M } \times \sqrt { 12 }\)
• C) \(\sqrt { \sigma _ { \mathrm { M } } }\times 12\)
• D) \(\sigma _ { \mathrm { M } } /\sqrt { 12 }\)
• E) \(\sqrt { 12 } / \sigma _ { \mathrm { M } }\)

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Definitions:

Expenses

Outflows of resources or incurring of liabilities (or a combination of both) resulting from a company's activities intended to generate income.

Assets

Economic resources owned or controlled by a business or an individual that are expected to produce value.

Accounting Information System

A system designed to collect, store, manage, process, retrieve, and report financial data for its users.

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and statement of cash flows.