Statistics/ capital allocation line Flashcards
(7 cards)
1
Q
What is the formula for returns?
A
2
Q
How do we calculate annualized returns?
A
3
Q
What is the formula of expected returns? And estimated risk?
A
4
Q
What is the risk premium and the sharpe ratio?
A
5
Q
WHat is a mean-variance analysis, what does it show?
A
6
Q
How can we derive the capital allocation line ?
A
7
Q
What y maximizes utility? How can we show that utility increases when we access the financial market?
A
