nannan66

idreesz Wrote:
-------------------------------------------------------
> hellscream Wrote:
> --------------------------------------------------
> -----
>
> >
> > Question: why correlation is 1 when assuming it
> is
> > fully segmented?
>
> Since it is segmented, it is being correlated to
> itself, since that is the only market is has
> exposure to. Therefore it is 1.

but in 2. calculate its Expected return using 1 as correlation to get R2 (assuming full segmented)
The Expected Return and SD for the market (or the Shape ratio for the market rather) are still using the global market numbers