CFA CFA Level 1 sample standard deviation

sample standard deviation

  • This topic has 1 reply, 2 voices, and was last updated Nov-20 by fp92.
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    • pcunniff
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      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%.

    • fp92
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      Sorry i don’t have the book, hence don’t follow your question. Std deviation is just square root of variance.

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