Doubt in portfolio management

CA Final 514 views 1 replies

In my SFM study mat the formula for standard deviation has been defined as 

 

std dev (rho) =  sq rt (X-Xbar)^2/n; which is correct if the we were looking at the population standard deviation.

 

But no where have I seen any distinctions being made with a sample standard deviation which is:

 sq rt (X-Xbar)^2/(n-1)

 

so my query is whether I should use a sample standard deviation when the representative data is a sample and a population std dev when the representative data is a population?

 

I feel I will be safe and go ahead with the formula in the book (i.e. the population std dev).

 

Comments?

Replies (1)
simply remember dat when ques is only to calculate sd den give solution using both d formulas.. And if sd is required to solve d rest of d ques den use d 1st formula only..


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