Annualized Realized Volatility

Problem

Compute realized volatility from a return list and annualize it: sqrt(sum of squared returns) * sqrt(periods_per_year).

Return 0.0 when periods_per_year is not positive or the return list is empty.

Hint

Realized volatility scales with the square root of the number of periods in a year.

case 1

in: [[0.01,-0.02,0.03],252]

expected: 0.5939696961967

case 2

in: [[0.1],4]

expected: 0.2

case 3

in: [[0,0],252]

expected: 0

case 4

in: [[],252]

expected: 0

Starter codePython

def annualized_realized_volatility(returns, periods_per_year):
    # Your code here
    pass

4 test cases · run your code against them in the editor