math formatting
SRKX
• 10.8k
• 4
• 37
• 82

# How to annualize Sharpe Ratio?

I have a basic question about annualized Sharpe Ratio Calculation, say: if I know the daily return of my portfolio, the thing I need to do is multiply the Sharpe Ratio by sqrt(252)$$\sqrt{252}$$ to have it annualized.

I don't know why is that, can any body explain?