CFAI curriculum, Portfolio Performance Appraisal Measures, V5 p651, gives a different formula for M2 M2 = [E (Rp) − Rf]*σm/σp + Rf Could you please comment?
Thank you for raising this issue. You are 100% correct. This is what the curriculum says. When I was recording the video, I based the formula on a previous version. For example, in the 2019 Level 1 curriculum, the formula is given in the version as used by me in the video. I didn’t think they would change the formula from one year to another
@@letmeexplaincfa My pleasure! Thank for wonderful material and explanations. Just came across 2 weeks ago, and regret that I didn't find it before! Everything gets really clear!
hi All, yes, indeed: there is M2 and M2 alpha, where M2 is basically your SharpeRation*σm + Rf; and M2 aplha is same, but adjusted by market return => SharpeRation*σm + Rf - Rm. The last formula is actually used in the video :)
thanks a lot for explaining this in a very logical manner
Great, Thanks for taking the time to write!
Simple, easy to follow. Well done.
Tahnk you very much!
you’re amazing!!! Helped me alot during my level 1 journey
I am very happy, thanks!
Loved the explanation
great explanation 👌
Thank you 🙏
Thanks a lot from Hong Kong
You are very welcome😀
Very well explained. Excellent.
Thank you very much🙏
CFAI curriculum, Portfolio Performance Appraisal Measures, V5 p651, gives a different formula for M2
M2 = [E (Rp) − Rf]*σm/σp + Rf
Could you please comment?
Thank you for raising this issue. You are 100% correct. This is what the curriculum says. When I was recording the video, I based the formula on a previous version. For example, in the 2019 Level 1 curriculum, the formula is given in the version as used by me in the video. I didn’t think they would change the formula from one year to another
I will need to update the video, thanks again
@@letmeexplaincfa My pleasure! Thank for wonderful material and explanations. Just came across 2 weeks ago, and regret that I didn't find it before! Everything gets really clear!
In addition to that, I believe what has been taught in the lecture, is now what is called M2 Alpha according to cfai. Correct me if I am wrong
hi All, yes, indeed: there is M2 and M2 alpha, where M2 is basically your SharpeRation*σm + Rf; and M2 aplha is same, but adjusted by market return => SharpeRation*σm + Rf - Rm. The last formula is actually used in the video :)
Great explanation, thank you!
Thank you🙏
Thank you!
👍
Amazingg!
🙏
Furman Center
Schaden Creek
Dashawn Common