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Hi All, Could anyone help me understand the inverse function? I am not able to understand why are we getting the anti-derivative of the function to get the probability? in the questions they give you the probability as a function isn't a simple substitution of the value of x ? isn't f(x) =pr...

Thank you David that was helpful so what I understand is that the below formula is wrong E(portfolio return) = Rf + (% invested in market portfolio)*volatility " and the accurate formula is E= RF + Sharpe* volatility As for the IR, it seems that it is ok to be ratio inconsistent in the...

1- Another Question on the post reading questions (lecture notes), question number 1, part (e) "What is the function that characterizes the CML here, in slope-intercept form? part of the answer: E(portfolio return) = 4% + (% invested in market portfolio)*12% " from where did we get the...

Hi David, One note on Page 8, the assumptions given are different than the snapshot of the spread sheet : RF 7% while in those calculated it is 4% same for market return5.18% vs 10%, portfolio return 16% vs 14% now the question on the calculation of the Information ratio, what i understood...

That's superb Thanks Nicole & David, kind of a good motivation to study hard :D Will let it accrue for now

Hi, Small firms are riskier than larger firms that's why investors ask for more compensation than those of larger firms. CAPM doesn't account for this premium

Hi David, I was going through the spread sheet and found in the first tab of the aforementioned excel file the PDF for IBM having a probability of more than 1. I tried it myself on a seperate excel file and got the same result.so if we want to find the zero return probability we will get 1.2...