Last answered:

20 May 2024

Posted on:

17 May 2024


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)
Posted on:

20 May 2024


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. 

Submit an answer