In this article, we will explain how to calculate the Sharpe Ratio in Excel. Basics of the Sharpe Ratio The Sharpe Ratio, also known as the Sharpe Index, is used to calculate the performance of an investment co
Of course, it’s impossible to have zero volatility, even with a government bond (prices go up and down). As volatility increases, the expected return has to go up significantly to compensate for that additional risk. The Sharpe ratio reveals the average investment return, minus ...
In this article, I have tried to explain how to calculate Average Ratio in Excel in 2 simple ways. We hope it will help the Excel Users.
If you trade or invest in crypto, you may have come across the term “bitcoin dominance”. In this guide, we’ll explain what bitcoin dominance is, how it works, and how to use itcorrectlyin your crypto strategy. Read More Ethereum Falling Wedge Pattern – ETH Breakout Ahead?
as it describes the explanatory power of the independent variables after partialling out the fixed effects. In contrast, in the fixed effects panel methods, all the dummy variables would explain much of the variation in the outcome variable, in addition to the explanatory power of the variables ...
The Sharpe Index measures the what? Explain how a percentage return is calculated, and describe the calculation of an arithmetic average return. Can you briefly explain your fundamentals in value investing? If we define the NPV index as the ratio of NPV to cost, what is the relationship betwee...
What is 0.84 percent of 500? Explain how to find the answer.Percentage:A percentage is a number expressed as a fraction of 100, marked with the "%" symbol. It is used to precisely describe part of the whole where the whole is assumed to be consisting of a hundred equal parts....
I think one of the things we’re hoping to do is maybe write another article to explain some of the distinctions. But I think it’s going to take a while for the industry to kind of get to that point where people can understand the differences between those products. And I think t...
However, even researchers finding a positive correlation between ESG and financial performance often fail to explain the economic mechanism that led to better performance, as they typically focused on historical data analysis. A paper by Harvey, Liu, and Zhu (2016) highlights that this type of ...
To outline the wavelet coherence method, it is essential to explain the cross-wavelet power and cross wavelet transform. The cross-wavelet transform can be justified through a couple of time sequences, a (t) and b (t) (Torrence and Compo, 1998):(4)Rabxy=RaxyRb∗xy,where a (t) ...