CFA® Level I Portfolio Management - Sharpe ratio, Treynor ratio, M2 , and Jensen’s alpha
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- Опубликовано: 30 ноя 2024
- This is an excerpt from our comprehensive animation library for CFA Level I candidates. For more materials to help you ace the CFA Level I Exam, head on down to prepnuggets.com.
Retirement at 55 feels like a stretch, especially with inflation constantly rising. What’s the best way to balance my long-term goals with the risks involved?
That’s a challenge many of us are facing. Retirement planning is definitely more complex now, and with the markets so volatile, it’s hard to know what to prioritize. Diversifying your portfolio is key, but understanding metrics like the Sharpe ratio, Treynor ratio, and Jensen’s alpha can also help you measure your portfolio’s risk-adjusted returns
I hear you. I had some major portfolio losses during the 2020 downturn, and it taught me the importance of having a professional advisor. Now I’m semi-retired, working a few hours a week, and just 25% short of my $3 million retirement goal. Having someone who can guide you through strategies to improve performance-like monitoring M2 and other risk-return measures-can make all the difference.
I’ve been managing my portfolio on my own, but honestly, it’s been a struggle to keep up with everything. I know I need to factor in things like risk tolerance and overall portfolio efficiency, but it feels overwhelming. Do you have any recommendations for a financial advisor who can really help optimize my investments?
You should look into Joseph Nick Cahill. He’s a CFA with years of experience improving portfolios for people in situations like ours. He’s well-versed in tools like the Sharpe ratio and Jensen’s alpha to fine-tune strategies and help you hit your goals. Plus, he offers free consultations, so it’s worth checking him out
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon
Great explanation - thanks!
Fabulous, thanks
Thank you too!
Any mistakes. I thought the M2 fomula is SR*stdmarket + Rf. Not SR*stdmarket -(Rm-Rf)
They changed it in this year's CFA curriculum. Obviously use the one you have on the 2024 CFA curriculum, so the shorter one
I believe the formula here is now referred to as the M^2 alpha I think, but anyway use what you got in the 2024 materials and you can't go wrong
The formula is M squared Alpha(not m squared)
@@IAP_mkt oh my mistakes, thk u so much!😙
Can any one explain it Why cfa holders gets lower income in comparison of other analytics (data analytics, business analytics, data science) although cfa is renowned certificate.
Great