A Division of Windham Capital Management, LLC

Annualizing Volatility and Return

Since discrete returns are log-normally distributed, the logarithms of one plus the discrete returns
(continuous returns) are normally distributed. To account for this, the following formulas are used during
the annualization process are described in Annualizing Volatility and Return (PDF)

Category:Understanding the Software -> Return Estimation
Category:Understanding the Software -> Risk Estimation