Calculating Leveraged Portfolio Std Dev

Feel like this is stupid question, so asking the forum instead of my colleagues. I'm on a time crunch and am not sure if I am approaching this problem correctly. I need to calculate standard deviation for say a portfolio of bonds and equities with leverage
 

Calculation for the total portfolio standard deviation has been completed without leverage. However, I need to incorporate it now. The portfolio is leveraged by say 3x the value of a certain asset. If I want to modify my portfolio standard deviation to incorporate this asset leverage, is it as simple as multiplying the turn of leverage with that individual asset's standard deviation and then doing the portfolio std dev calcs using the leveraged asset standard deviation?

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  • Works at Bank of America Merrill Lynch
Jun 30, 2022 - 11:14am

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