Regarding the portfolio std.defviation
Hi so I see when u calculate the std deviation of the portfolio, you take the std.deviation as the variance in the formula & the multiplation of those 2 as the product of std.deviation in the formula. My question is why are you taking the std.deviation of the stocks as the variance ?
1 answers ( 0 marked as helpful)
Hi Lokesh!
Thanks for reaching out.
Are you referring to the 2-stock portfolio formula displayed in minute 4:32, please?
In any case, the standard deviation equals the square root of a variance. So, it is a matter of representation to use the standard deviation value.
Hope this helps but please feel free to get back to us should you need further assistance. Thank you.
Best,
Martin
