@@RonaldMoy thank you for reply. You are using it in counting standard deviation of variations. Simply when you are counting standard deviation, before sharpe
When including dividend producing stocks/index funds is it simply a matter of painstakingly, manually making the adjustments - including the flow though effects?
Love this video. I am an aspiring portfolio manager, and just learned something I can add to my arsenal
hey im an aspiring portfolio manager as well. Maybe we can bounce ideas off eachoter and get in contact? im not a bot btw lol
Just one comment: You are dividing the expected *monthly return* by the annual risk free rate?
Had the same concern.
Funny how now you can import into ChatGPT, and it will perform the calculations.
Sharpe ratio formula is wrong. Risk free rate is annualized. Your expected return and std dev are monthly.
You fixed weights randomy or it has a rule
Hi may I ask why stdev is ^0,5? Thank you very much!
Where in the video did I use .5?
@@RonaldMoy thank you for reply. You are using it in counting standard deviation of variations. Simply when you are counting standard deviation, before sharpe
@@RonaldMoyit is in 15:45 thank you very much. This is only thing i dont understand there
We are computing the variance so the ^.5 is taking the square root of the variance to get the std dev. (raising to the 1/2 power)@@sobmarka
@@RonaldMoy thank you so much, so id I understand well, it is constant. Is that?
When including dividend producing stocks/index funds is it simply a matter of painstakingly, manually making the adjustments - including the flow though effects?
Thats why you use the adjusted close
can you share the sheet
This is incorrect - you cant take monthly stock returns and annual RF rate
The only data than seems real is Berk.
Oddly enough, the returns appear to be real.
Oops, it isn't.