BarclayHedge Insider - BarclayHedge

Annualized Standard Deviation of Monthly / Quarterly Return

Written by superadmin | Feb 2, 2012 6:00:00 AM

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.