Where is this equation in the books?

CFA Level III
#1

(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?

#2

I saw this in the CFAI text. Even Stalla did not cover it.

#3

was in schweser as well somewhere.

#4

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

#5

makes me wish I’d cracked open the CFAI texts a bit earlier now… Thanks alot guys

#6

It was in Stalla i believe.

#7

cfa, volume 3, page 200

#8

schweser covered it in their books and vid series

#9

Just a hunch, but I think this will show up on the exam