Monthly standard deviation to annualized standard deviation

archived_user

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
Convert monthly standard deviation to annualized standard deviation should mutiply 12^(1/2). Why? Seems like a level 1 question…
 
annual variance = monthly variance * 12
so take sqrt of both sides
annual std dev = monthly std dev * sqrt(12)
 
Back
Top