gjm and Lumifer, thanks for the detailed discussion.

I want to clarify a few points, mainly regarding the context of what I'm writing. My goal was to give an intuition about multiplicity cropping up in different contexts in 400 words, not to explain the details of financial engineering or the difference between t and Z scores.

There are advanced approaches to annualizing Sharpe Ratios but the first method that people are taught is to:

1. Take the average daily return over a number of days, and multiply that by 252 (number of trading days in a year) to get the