Sharpe Ratio can be gamed

GIPS: “The three-year annualized EX-POST STANDARD DEVIATION (using monthly returns) of both the COMPOSITE and the BENCHMARK;”

Now does it make more sense with this sentence:

“Compounding the monthly returns but calculating the standard deviation from the (not compounding) monthly returns.”

Actually, monthly composite returns are the highest frequent data the firm is required to have.

Reading your threads, sometimes hurts my head, I think I should probably go study instead, otherwise I’m probably dead.

-A haiku by MarkCFAIL

I’m reviewing the schw slides…BSAS mock is a trigger for me to scan all the slides. To pull the relevant pieces from memory quickly is a challenge to me. Sometimes I had to pause and calm down, and think of those endless lists of sh*ts… I left 15 miniutes questions blank in BSAS mock AM.

You are more well prepared than me…At this stage, it’s not how much to know or known, it’s more a question how to 1) get it right quickly and 2) minimize RTFQ error. By the way, correcting the first step in a long calculation is no good idea, unless I’m very confident what I’m doing and it’s worth the time. I spent two more minues to correct the calculation, but later I found that I just lost 4 points.:frowning:

The returns cals are IMO just meant to trap people into wasting time. In the big scheme they are not worth the effort if you can’t nail it the first time.

I could use some more mocks, is BSAS any good compared to Schweser? I REALLY don’t want to spend 3x the money, but I need tests. I find it absurd they think they can charge 3x the cost of other providers…

I haven’t seen Schweser this year yet. Based on last year’s experience, BSAS is worth it. You may want to reduce the cost by sharing the cost with others. I got the paper for $70, no pdf. There must be a pdf version.