Annual Standard Deviation = Standard Deviation Daily x (# of trading days in the year)^(1/2) Can anyone help me understand why we are taking the square root of # of trading days in the year? I have a feeling I am missing something so basic… Thank you in advance.
Annual Variance = daily Variance * #trading days
so
Annual Variance ^(1/2)= daily Variance^(1/2) * #trading days ^(1/2)
Annual Standard Deviation = Standard Deviation Daily x (# of trading days in the year)^(1/2)
wow, I didn’t realize it came out because of that.
lol,
that’s the actuary perspective . haha
haha perfect. thanks summerside