CFA Level 1 | Quantitative Methods: Roys' Safety First Ratio

[@aimer3042]

brilliant~ very clear explanation.. Thanks for your endeavor.

[@FabianMoa]

You're very welcome, Aimer!

[@missieVANDOORN]

Saviour! CFA curriculum thoroughly baffled me

[@samakshnagpal9259]

amazing explanation!

[@simfinso858]

More the Safety Lower the shortfall nice.

[@ariukaa27]

thank you 🙏

[@FabianMoa]

You're welcome 😊

[@WorldWideSk8boarding]

excellent

[@magaaliev4682]

Thank you for explanation sir. i was wandering why do we not just divide RL by standardt diviation , cuz it will show us which distrbution has smaller shortfall risk area. Thank in advance!

[@FabianMoa]

How will you know whether the shortfall risk area is smaller or larger without comparing to the average return (i.e., center of the distribution)?