Dear David:
Sorry for having such a basic question but still i want to ask it. For calculating annual volatility from daily volatility, we multiply daily volatility with the square root of 252 (total annual days). Why we use square root of days and not the actual days?
best regards,
peter
Sorry for having such a basic question but still i want to ask it. For calculating annual volatility from daily volatility, we multiply daily volatility with the square root of 252 (total annual days). Why we use square root of days and not the actual days?
best regards,
peter