标题: Expected Return on a Foreign Market [打印本页] 作者: Howd 时间: 2011-7-11 20:05 标题: Expected Return on a Foreign Market
What all do we need to know here? I'm a pure Schweser guy, and it's not really clear.
Expected return for integrated market = correlation * foreign market std. dev * (world market expected return/world market standard deviation)
Expected return for segmented market = foreign market std. dev * (world market expected return/world market standard deviation)
If calculating expected return for a partially integrated market, calculate them independently and your total expected return is weighted by the amount the market is integrated.
I can't recall the formula for Beta and covariance....is that something I need to hammer down? What else do we need to know on this topic?
Edited 1 time(s). Last edit at Saturday, May 28, 2011 at 06:58PM by acb2011.作者: zwjy 时间: 2011-7-11 20:05
yes hammer down beta and covariance. they keep poppin up everywhere and i swear i have seen 3 different ways to calculate beta
