Hi David,
I read the above posts of year 2008 and have got even more confused.
What is the benchmark return? Isnt it the return expected or targeted by the manager? Is this benchmark return , the return(benchmark) that the portfolio gives in excess of the expected return...
Hi David,
I am reading Portfolio Construction Topic by Grinold.I am finding it very difficult to understand.Please help me.
1 Alpha is a measure of the performance of the portfolio above or below the benchmark (expected return) right?
2 How do we relate alpha with active...
Hi David,
Thanx a ton.One more thing what I can deduce from your reply is that I need to focus on Hull for this topic.Should I read the natural gas,gold etc part from McDonald keeping testability into mind or just for the concepts? I am not clear on this.
Hi David,
I have been reading Derivative Markets by McDonald Chapter 6 on Commodity Forwards and Futures.However I am unable to understand lot of the strategies put forth in the pricing of forwards and the cash and carry arbitrage related tables given in the Chapter.Can you...
Hi David,
Just started reading Tuckman and I am confused with STRIPS.Read the posts for year 2008 but I still have some basic doubts.
Lets take an example of 5-year $10000 US Treasury Bond with annual coupon rate 5% .Now on stripping this would give 1 P-STRIP & 10...
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