Great content! But why do you use arithmetic returns and not geometric returns when calculating the risk-adjusted return measures? Is it possible to use geometric returns when calculating the Sharpe and Treynor Ratio?
Sorry I've been such a bad student. I'll pick up the pace. One suggestion. Can you show what a bad financial statement looks like. For example, just prior to going bankrupt, I'd like to see Lehman Brother's financial statements. It all seems obvious now, but they were leverage 40 to 1 and if tat was visible in the financial disclosure statements.
14:02 Alpha and beta
Great content! But why do you use arithmetic returns and not geometric returns when calculating the risk-adjusted return measures? Is it possible to use geometric returns when calculating the Sharpe and Treynor Ratio?
Sorry I've been such a bad student. I'll pick up the pace. One suggestion. Can you show what a bad financial statement looks like. For example, just prior to going bankrupt, I'd like to see Lehman Brother's financial statements. It all seems obvious now, but they were leverage 40 to 1 and if tat was visible in the financial disclosure statements.