Does anyone know the CFA is calculating the new Sharpe ratio and standard deviation of the portfolio? I don’t see how they’re going from .49 to .51 (Sharpe) and how they’re increasing the std dev from 9.1 to 9.69. Curious if any one had some thoughts on this. Thanks in advance!
σp2 = w12σ12 + w22σ22 + 2w1w2σ1σ2ρ
You can also ditch the corner portfolio questions.
Thank you. My god that’s a hell of an equation. Did IFT put out a new “relevancy of past level 3 essay exam questions” matrix for this year’s test? The one from 2018 had the question as still relevant…