Suppose that you have computed a stock return's variance with weekly data.To convert this to an annual variance,you need to use the adjustment:

Question

Quizplus · Accepted Answer

To convert weekly data to annual data, we need to adjust for the number of periods in a year. Since there are 52 weeks in a year, we need to multiply the weekly variance by 52 to get the annual variance. Therefore, the correct adjustment is Variance (Annual) = Variance (Weekly) x 52. Option B provides this adjustment.

Suppose That You Have Computed a Stock Return's Variance with Weekly