Hey Guys
How did they calculate 28.78? I am getting 22.6.
R*=0.416
So as an example Jan = Min(3.5-0.416,0)*2
they are asking for downside deviation.
so you need to look at only those points where the return is < average return over the 12 month period (which is 0.6416) and only for those numbers do the sum of (return-0.416)^2
that did turn out to be 28.78… for the 6 periods where return is < 0.6416
Thanks, it was forumla mistake in excel.
Who typed in the forumla (sic)?
