(E(r new)-Rf)/(sd new) >((E(r p)-Rf)/(sd p))corr (r new, rp) this relates to a question about adding hedge fund and/or venture capital to a portfolio… schweser mock exam vol 2 exam 2 pm question 22.3 page 226 I’m happy to learn another equation but why isnt this in the notes?
I saw this in the CFAI text. Even Stalla did not cover it.
was in schweser as well somewhere.
This is the calc to determine the impact of adding an asset class to an existing portfolio. V3 R#24 - p200 SHarpe New > Sharpe Old * Correlation
makes me wish I’d cracked open the CFAI texts a bit earlier now… Thanks alot guys
It was in Stalla i believe.
cfa, volume 3, page 200
schweser covered it in their books and vid series
Just a hunch, but I think this will show up on the exam