# Annualizing Volatility and Return

Since discrete returns are log-normally distributed, the logarithms of one plus the discrete returns (continuous returns) are normally distributed. We can account for this property and its effects on compounding when annualizing estimates, please see

{% file src="/files/-MEyDQ9ege2MUVSrLuP9" %}
Annualizing Volatility and Return
{% endfile %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://wpahelp.windhamlabs.com/expected-risk/annualizing-volatility-and-return.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.