Long-term investment may mean different thing for different people, but for ... Continue reading
Portfolio Management
Short-fall Risk, Safety-first Ratio, and …
Shortfall Risk Shortfall risk refers to the probability that a portfolio ... Continue reading
What is Tracking Error …
Tracking error is a measure of how closely a portfolio follows its ... Continue reading
Calculate Risk-adjusted Returns Using Be …
The risk-adjusted return of a portfolio or an asset can be calculated using ... Continue reading
How to Build Efficient Frontier in Excel …
As we know, an efficient frontier represents the set of efficient portfolios ... Continue reading
Jensen’s Alpha Calculator in Excel …
The Jensen’s Alpha is a popular risk-adjusted performance measure used by ... Continue reading
A Value Investing Approach to Manage an …
This presentation by Vincenzo Boin makes the case of a value investing ... Continue reading
Question: Performance Measurement Using …
This question appeared in one of the university exams for portfolio ... Continue reading
How Do Hedge Funds Manage Portfolio Risk …
This video by Gavin Cassar and Joseph Gerako investigates the determinants ... Continue reading
How to Calculate Portfolio Risk and Retu …
In this article, we will learn how to compute the risk and return of a ... Continue reading
Selecting Optimal Portfolio for an Inves …
In the previous articles, we learned that an investor can invest in a ... Continue reading
Capital Allocation Line with Two Assets …
We know that an investor can combine many risky assets to create a portfolio ... Continue reading
Utility Indifference Curves for Risk-ave …
In the previous article we learned that different investors exhibit ... Continue reading
Risk Aversion of Investors and Portfolio …
We have seen that different asset classes such as bonds, stocks, and ... Continue reading
Effect of Correlation on Diversification …
In this article, we will look at how correlation affects the diversification ... Continue reading
Efficient Frontier for a Portfolio of Tw …
We learned that the calculation of risk for a portfolio of two assets is not ... Continue reading
Standard Deviation and Variance of a Por …
We learned about how to calculate the standard deviation of a single asset. ... Continue reading
Calculate Variance and Standard Deviatio …
After discussing the calculation of returns on investments, let’s now learn ... Continue reading
Nominal Returns and Real Returns in Inve …
While calculating the returns on an investment, what we directly observe is ... Continue reading
How to Calculate Leveraged Returns …
We have looked at a variety of return measures. However, till now we assumed ... Continue reading