I have a series of daily returns of a fixed income instrument. How would I compute it's annualized volatility?
I can use excel. Assume that the daily returns are in A1:A756 (~ 3 years of data). Is it just stdev(a1:a756) * sqrt(252)? More generically if I have a data set of n items what would it's annualized volatility be? I think that the multiplication with sqrt(252) should depend on the number of items in my data set but I'm not sure how to proceed..
Any help would be much appreciated.
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