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Question 308  risk, standard deviation, variance, no explanation

A stock's standard deviation of returns is expected to be:

  • 0.09 per month for the first 5 months;
  • 0.14 per month for the next 7 months.

What is the expected standard deviation of the stock per year ##(\sigma_\text{annual})##?

Assume that returns are independently and identically distributed (iid) and therefore have zero auto-correlation.