Singer-Terhaar (Full Segmentation)

CFA Level III Portfolio Management
#1

For the full segmentation calculation, are you supposed to use the Global Market Sharpe Ratio or the local market Sharpe Ratio?

#2

Local.

This is a change that appeared in the 2020 curriculum. Therefore, the Singer-Terhaar question on the 2018 exam has an answer that is out of date.

#3

If provided with Sharpe ratio of segmented market, then use it.

If the above is not provided, then use Global Market Sharpe ratio

#4

Cause CFAI likes us so much :smiley:

#5

Thank you!