H = correlation (Rdc,Rfx) * [St. Dev (Rdc) / St. Dev (RFx)]
H = Cov (Rdc, Rfx) / Var(Rfx)
I feel like i’m picking out the bones of a fish trying to get this formula straight. Couldn’t they just have labled (with clarity) what the variables are on page 63…
Oh me too never heard of it. I remember in economic reading RISK PREMIUM under singer and terhaar = p * std * market sharp ratio. Beta = covar / market var. covar = p * sdt I * std j.
It’s buried in the currency management section - page 63. I was more or less trying to confirm Rfx or Rdc was on the denominator, wasn’t very clear in the text
Thanks for fixing the denominator on my second formula What you look…- tired eyes