L-2 Morning Quiz Q26

mail2arungoel
Good Student
Posts: 29
Joined: Mon Apr 23, 2012 9:45 pm

L-2 Morning Quiz Q26

Postby mail2arungoel » Mon May 28, 2012 1:50 pm

The equation : 26. Ans. c) σ (portfolio) = (1/n) × σ2(asset average) + ((n-1)/n) × σ2(asset average) × ρ(asset average)

pertains to VARIANCE, but instead the same has been used to answer STANDARD DEVIATION !

If u agree pl. issue an errata for all concerned.
Regards
Arun Goel

jaspreet.frm
Good Student
Posts: 13
Joined: Mon May 14, 2012 2:42 pm

Re: L-2 Morning Quiz Q26

Postby jaspreet.frm » Wed May 30, 2012 4:32 pm

Hi Arun,

You are right. The calculations in the solution are done for variance rather than standard deviation. :)


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