All categories

1 year ago

When estimating a sharpe ratio, would it make sense to use the average excess real return that accounts for inflation?

1 answer:

7 0

When estimating a Sharpe ratio, it makes sense to use the average excess real return that accounts for inflation the geometric return represents a compounding growth number and would inflate the annual performance of the portfolio.

As a rule of thumb, a Sharpe ratio above 0.5 is marketplace-beating performance if finished over the longer term. A ratio of one is top-notch and hard to attain over lengthy durations of time. A ratio of zero.2-zero.3 is in keeping with the wider marketplace.

In finance, the Sharpe ratio measures the performance of investment together with protection or portfolio as compared to a risk-unfastened asset, after adjusting for its risk.

It facilitates traders to perceive the threat level and changed the return rate of all mutual price ranges. This gives a clean image to the investors, and they get to recognize if the threat they take is giving top returns or not.

Learn more about the Sharpe ratio here brainly.com/question/16258028

#SPJ4

You might be interested in

DEF Ltd is a global leader in the manufacture, integration and support of networking and telecommunications systems. The company

Serjik [45]

Some of the challenges of this company include lack of control over financial reporting in all branches, and inaccurate data to make decisions for next years.

DEF Ltd's main problem is the inaccuracy regarding the recognition of revenue and other inconsistencies in financial reporting. This problem includes:

Inaccuracies related to revenue and deferred revenue.
Lack of documentation of some transactions.

Moreover, these problems are intended to be solved through a review process and training seminars. These two ideas are useful for the problem; however, the company might face some challenges and problems such as:

Lack of control in all branches: DEF Ltd seems to be a big company with multiple branches around the world. This makes it difficult for the company to control all financial records even if employees are educated about the process through seminars.
Inaccurate data for next periods: Considering there are lots of inconsistencies and some of the reports are incomplete, it is likely even after the review process the company does not have complete information about the previous transactions or revenues. This can affect future projections and decisions.

Note: This question is incomplete; here is the missing part:

Using the disclosures above as a starting point, brainstorm about the challenges regarding internal controls and that a company may face in doing business internationally?

Learn more in: brainly.com/question/10916805

5 0

2 years ago

He theoretic perspectives of priming, agenda setting, and framing are all similar, yet scholars say they are not exactly the sam

Tasya [4]

I was stuck on the same thing in my class test. I ended up failing but if I get the answers to it I’ll totally send them to you!!!

3 0

4 years ago

Cindy earned a 10 percent increase in her salary and received the entire increase at the beginning of the year, with the stipula

sammy [17]

Answer:

Lump-sum salary increase.

Explanation:

A lump-sum salary increase is an amount paid instead of increase in salary. It is not added to the fixed base salary, it is instead given in the form of a single cash payment, as it is the case with Cindy here. This is why it is also known as lump sum bonus, because it is given as a single payment, as it was in Cindy’s case, all given at the beginning of the year.

7 0

3 years ago

What happens when the price of a good increases

swat32

Answer:

the value of good increases (goes up)

3 0

3 years ago

What’s the answer???

Yuliya22 [10]

Answer:

market

Explanation:

for the top one market is where they trade

6 0

3 years ago

Read 2 more answers