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    risk

    Volatility

    How much returns swing up and down, usually expressed as annualized standard deviation.

    Volatility is the standard deviation of returns, annualized by multiplying daily vol by the square root of 252. Higher volatility means a wider range of outcomes.

    Formula

    \sigma_{ann} = \sigma_{daily} \cdot \sqrt{252}

    Related terms

    BetaSharpe Ratio

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