Nice teaching sir in this life it only takes one step to make which will lead you to your success if only you are bold enough and ready to accept the risk involve in life,and i believe the only way to financial freedom its when your willing scale through your financial problems in life That why am happy I got my back covered by Mr pieto
Apparently this is one of the most gifted trader around, I have only been with him for 3 months now and I have learned so much about his trading skills.
Mr Romero pieto trades on my behalf due to my tight schedules and he is indeed absolutely doing great, my last investment of $5000 he gave me my ROI of $27,350 in a period of two weeks of trading isn't that amazing
Vincent brown Am from Australia 🇦🇺 and am also a newbie in the online Trading market so please how can I get hold of Mr pieto and his trading services ?
Didn't watch the video on efficient portfolio's but based on the graph, it looks like the purple part is efficient because taking on more risk yields BETTER reward and and the yellow part is where taking on more risk yields WORSE rewards. Does the yellow section all have a negative sharpe ratio?
But if at the denominator we have the standard deviation, doesn't the Sharpe ratio penalizes the upward volatility as well ? Which is not desirable? Or it is based upon all volatility will imply sooner or later the same in the oposite direction, hence it's bad ?
So the portfolio of risky assets tangent to the CML has the highest Sharpe Ratio. But all the portfolio on the CML have the same Sharpe Ratio, since the slope of the CML is the Sharpe Ratio, correct? And the points on the CML can be obtained by a combination of the risk-free asset and the tangent portfolio of risky assets, right?
volatility does not equal risk. volatility is how much the data disperses from the expected value. risk is the probability that the investor deviates from their expected return. Variance measures volatility & not risk. One of the measures of risk is Standard Deviation.
what do we mean by underperform in this context? My understanding of the written definition is that how many SD (risk) the portfolio must decrease in order to achieve the most optimal portfolio ( the portfolio tangent to the CML) ?? Is this the correct understanding???
Great video - Can anyone tell me why my best-performing stock has the worst sharpe ratio at-52% ( this is based on just 1 stock and its SD and ER not a portfolio).
Never agreed with the cml being the portfolio of rationality. As warren buffet said - divsersification is for people who dont know how to invest. Thered nothing irrational about taking on more risk if you can manage it... hedging comes big into this.
Probably the most simple explanation of this investment formula. Everyone else out there makes it sound like calculus... thank you!
You are the best finance teacher ever. I only see your video ONCE and I get it all.
This channel is like maximum learning per time spent, the McLaughlin ratio :)
Thank you Sir! You saved my life from CPA, now you will save me from CFA....
Just passed my finance final because of you. Thank you!
This guy really hits the nail on the head with most of his videos. Salut you sir.
Thank you!
What an amazing channel! So much teaching available for free (except a few seconds of our time spent watching ads)
Glad you enjoy it!
@@Edspira Sure did! And it's inspiring my own course on alternative investments
Heck I would watch the whole ad to support
Nice teaching sir in this life it only takes one step to make which will lead you to your success if only you are bold enough and ready to accept the risk involve in life,and i believe the only way to financial freedom its when your willing scale through your financial problems in life That why am happy I got my back covered by Mr pieto
His trade execution quality and profiting is well structured with great financial features.
Apparently this is one of the most gifted trader around, I have only been with him for 3 months now and I have learned so much about his trading skills.
Well explained video sir.
Mr Romero pieto trades on my behalf due to my tight schedules and he is indeed absolutely doing great, my last investment of $5000 he gave me my ROI of $27,350 in a period of two weeks of trading isn't that amazing
Vincent brown Am from Australia 🇦🇺 and am also a newbie in the online Trading market so please how can I get hold of Mr pieto and his trading services ?
Dude, your videos are golden, glad that i came across your channel
I’m still in high school but I just find finance so interesting! Thank you for ur explanation
Thank you. Thoroughly explained.
your videos have been so helpful over the semesters thank you so much!
Thank you for sharing such a helpful interpretation of sharp ratio, I am so excited to see more videos from you.
Great video, you are a gifted teacher, keep up the good work!
as always... an amazing video! thank you
Didn't watch the video on efficient portfolio's but based on the graph, it looks like the purple part is efficient because taking on more risk yields BETTER reward and and the yellow part is where taking on more risk yields WORSE rewards. Does the yellow section all have a negative sharpe ratio?
But if at the denominator we have the standard deviation, doesn't the Sharpe ratio penalizes the upward volatility as well ? Which is not desirable? Or it is based upon all volatility will imply sooner or later the same in the oposite direction, hence it's bad ?
I understand it now! Thank you!!!
So the portfolio of risky assets tangent to the CML has the highest Sharpe Ratio. But all the portfolio on the CML have the same Sharpe Ratio, since the slope of the CML is the Sharpe Ratio, correct?
And the points on the CML can be obtained by a combination of the risk-free asset and the tangent portfolio of risky assets, right?
Is market portfolio the same as tangency portfolio? Plz reply I have an exam on Monday
So how do u calculate the market portfolio?
volatility does not equal risk. volatility is how much the data disperses from the expected value. risk is the probability that the investor deviates from their expected return. Variance measures volatility & not risk. One of the measures of risk is Standard Deviation.
what do we mean by underperform in this context? My understanding of the written definition is that how many SD (risk) the portfolio must decrease in order to achieve the most optimal portfolio ( the portfolio tangent to the CML) ?? Is this the correct understanding???
Wolfgang Icarus, No - in his example if portfolio falls by 0.5 sd then it will underperform the risk free rate
How can the dividend yield rate be included in the calculation?
Is it reasonable to say S = (rtn + div yield - risk free) / stddev(rtn) ???
Where do we find the volatility of an ETF?
What's it called? Is it labeled as 'volatility' or 'beta' ?
Very clear explanation. Could you please make a video on the sortino ratio? Many thanks in advance!
Thank you so much
You're most welcome
great video!!
Hii is this the same as the market price of risk?
Thank you so much for the explanation. Do you have an excel sheet as an example. With daily data?. Rgds and thanks!
Very informative video. Are you using Geometric or Arithmetic Rates of Return and Standard Deviations?
why is volatility equal to risk?
what if the portfolio is a short portfolio?
Great video - Can anyone tell me why my best-performing stock has the worst sharpe ratio at-52% ( this is based on just 1 stock and its SD and ER not a portfolio).
Sharp ratio doesn't really work on a single stock
The most comprehensive video on youtube) would be even better if you include some specific examples ! Thank you anyway)
Never agreed with the cml being the portfolio of rationality. As warren buffet said - divsersification is for people who dont know how to invest. Thered nothing irrational about taking on more risk if you can manage it... hedging comes big into this.
But sharpe ratio changes all the time, and no one can predict whether a fund will perform better in the long run.
risk free investion means less risk
Basically a finance-ish z score...
Where is the factor for standard of living? Yea, didn't think so...
but you never explained that r_p and r_f is