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

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.

Nice formula :slight_smile:

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)

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

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

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

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

It is in the Elan notes…