apologies if this is not the correct place for this type of question, but I just want to confirm if the following de-annualization is correct.
if a manager states that he will earn 200 bps of target excess returns over a year. How much daily target excess returns would be expected?
i believe that the de-annualization should be 200 ^ (1/252), but a colleague said that it should be 200 * 1/252. Which method is the most correct approach?