One being that it is “computationally challenging for large portfolios” (p.13, CFAI vol 4). Why? I thought the calculation will be similar to calculate variance. For Schweser, this is the first bullet point on p.9, Book 3. - sticky

CFAI is computationally challenged. That calculation is instantaneous on a $1000 PC for enormous portfolios. It is a little harder because you have an ‘If’ statment there.

JoeyDVivre Wrote: ------------------------------------------------------- > CFAI is computationally challenged. That > calculation is instantaneous on a $1000 PC for > enormous portfolios. It is a little harder > because you have an ‘If’ statment there. Shxt, how “difficult” … worrying whether I should say it’s difficult or not in the real exam … @_@ Thanks for the reply though, JoeyD. - sticky

JoeyDVivre Wrote: ------------------------------------------------------- > CFAI is computationally challenged. That > calculation is instantaneous on a $1000 PC for > enormous portfolios. It is a little harder > because you have an ‘If’ statment there. +1

Semivariance -Difficult to calc -Less accurate due to using only half the data points -If returns are normal would yield same as variance and variance is better understood