PM - Will we need to calculate TC or will it be given?

J

Jones473

New member
Joined
May 5, 2015
Messages
0
Reaction score
0
Has anybody seen exercises where we need to calculate the TC based on a correlation matrix, or is it given in most cases?
 
No, I haven’t seen any. When in doubt, fall back to the LOS. The only “calculate” LOS in the Fundamental Law reading is for the Information Ratio.
 
May I also ask if we need to calculate these?
1. Value added = Alpha - (risk aversion x residual risk^2)
2. Optimal residual risk =IR / 2*risk aversion
3. Highest value added = optimal residual risk x (IR/2)
 
tau281290 wrote:
May I also ask if we need to calculate these?
1. Value added = Alpha - (risk aversion x residual risk^2)
2. Optimal residual risk =IR / 2*risk aversion
3. Highest value added = optimal residual risk x (IR/2)
Click to expand...
Where have you seen these in the curriculum?
 
Not these formulas directly, but concepts to do with risk aversion within this topic. These formulas might be from last year.
 
You must log in or register to reply here.
Back
Top