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Practicing conceptThe Sharpe Ratio· 3 questions

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Derivatives & Risk
Risk · Sharpe Ratio
Easy

Annualized Sharpe Ratio

A strategy has an average daily return divided by daily return volatility equal to 0.10. Assuming independent identically distributed daily returns and 252 trading days per year, what is the annualized Sharpe ratio?

Quant interview-style problem · QS-T006

Think first. Use hints deliberately. Study the reasoning only when you need it.