Treynor - Black clarification

in the weighting forumla w = alpha/sigma squared etc the sigma portion is unsystematic risk only correct?


wwwwwhat??? just joking don’t know this shiAt at all

BTW, a reading of the three LoS related to Treynor Black indicates that we probably dont need to know any formulas. None of the LoS uses the word “calculate.”

last year the killer was TB in the PM section covering the bases 1luv free tibet peace out

the CFAI text explicitly states that you don’t need to know the formulae so I didn’t bother

To determine the correction allocation: (stock alpha/stock variance) / (portfolio alpha / portfolio variance)