I have a basic question about annualized Sharpe Ratio Calculation: if I know the daily return of my portfolio, the thing I need to do is multiply the Sharpe Ratio by $\sqrt{252}$ to have it annualized.
I don't know why is that, can any body explain?
I understand that this question relates more to wikipedia than it does writing but... If I was going to use wikipedia for a source for a res...
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