Add new asset if Sharpe Asset > Sharpe Port x corr(a,p). New formula learnt today

broadex · May 29, 2014

New formula i have learnt today 2 weeks before exam!
Add new asset to portifolio if:
Sharpe Asset > Sharpe Port x corr(a,p)
From CFA Mock 2014.

Iconoclasts · May 29, 2014

Nice formula

That being said, it is in the curriculum so should not come as a surprise! (But hey, who can remember it all? Except for rahul roy ofcourse)

Life is Overwhelming · May 29, 2014

It’s not in Schweser .. I think I saw it in CFAI EOC

jitendra179 · May 29, 2014

I have also learn a new formula P/E = 1/ (rho+(1-Lambda) Inflation)

tjack82b · May 29, 2014

I also learned this recently. It wasn’t in Schweser.

zxfmontreal · May 29, 2014

jitendra179 wrote:
I have also learn a new formula P/E = 1/ (rho+(1-Lambda) Inflation)

What is this one? never seen it in CFA mock exams.

Nellz · May 29, 2014

It is in the Elan notes..