Expected Return on a Foreign Market Foreign, standard, expected, partially

Howd

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.

zwjy

yes hammer down beta and covariance. they keep poppin up everywhere and i swear i have seen 3 different ways to calculate beta