Annualized Standard Deviation of Monthly / Quarterly Return

Formula: (Std. Dev. of Monthly ROR) X SQRT (12) or (Std. Dev. of Quarterly ROR) X SQRT (4)

Note: Multiplying monthly Standard Deviation by the SQRT (12) is an industry standard method of approximating annualized Standard Deviations of Monthly Returns.

FREE Live Data on 6155 Hedge Funds & CTAs

 

Related Terms:

• Equity Hedge definition
• Average Recovery Time ART definition
• Market Timing definition
• Event Driven definition
• Time Windows definition

Back to definitions home page >>