Y axis = Portfolio return and X axis = benchmark. It's typical to regress the portfolio returns/excess returns (Y axis) against the benchmark/index, so that the intercept represents over/under-performance when X = 0 (i..e, uncorrelated to common factor). Just like CAPM regresses portfolio (excess) portfolio return (Y axis) against excess market return (X axis). I didn't label it because, at least for me, "portfolio vs. benchmark" connotes "regress Y against X." I hope that's helpful
Dear Sir, 2 queries (a) Can you please share the excel file of the above simulation, it would be easier to understand the workings will learning through the video. (b) Also, for Index funds what would be the Information ratio. Thank you very much, Appreciate your reply. Akshay
the Y axis in the graph is represented by which variable? (Y=P yield or Y=B yield) (the same for the X axis)
Y axis = Portfolio return and X axis = benchmark. It's typical to regress the portfolio returns/excess returns (Y axis) against the benchmark/index, so that the intercept represents over/under-performance when X = 0 (i..e, uncorrelated to common factor). Just like CAPM regresses portfolio (excess) portfolio return (Y axis) against excess market return (X axis). I didn't label it because, at least for me, "portfolio vs. benchmark" connotes "regress Y against X." I hope that's helpful
thank you! 😊
pro tip : you can watch series on Flixzone. Been using it for watching loads of movies during the lockdown.
Thank you for your videos sir, so valuable!
Dear Sir, 2 queries (a) Can you please share the excel file of the above simulation, it would be easier to understand the workings will learning through the video.
(b) Also, for Index funds what would be the Information ratio.
Thank you very much, Appreciate your reply.
Akshay
Character In the video It's great, I like it a lot $$
thank you sir
I have so many questions 😨
jane Rung'u let's hear them, I am always trying to improve