M-squared (M2) ratio (for the @CFA Level 1 exam)

Рет қаралды 3,395

Жыл бұрын

M-squared (M2) ratio (for the @CFA Level 1 exam) explores the logic behing the M-squared measure of portfolio performance.

Пікірлер: 26

@revintk Жыл бұрын

Loved the explanation

@idkidek4905 10 ай бұрын

you’re amazing!!! Helped me alot during my level 1 journey

@letmeexplaincfa 7 ай бұрын

I am very happy, thanks!

@manikjain9276 7 ай бұрын

thanks a lot for explaining this in a very logical manner

@letmeexplaincfa 7 ай бұрын

Great, Thanks for taking the time to write!

@rxviper4833 Жыл бұрын

Great explanation, thank you!

@letmeexplaincfa Жыл бұрын

Thank you🙏

@maruyamamarius7124 6 ай бұрын

Simple, easy to follow. Well done.

@letmeexplaincfa 6 ай бұрын

Tahnk you very much!

@ek6356 Жыл бұрын

Thank you!

@letmeexplaincfa Жыл бұрын

👍

@fadiaodeh8574 Жыл бұрын

Amazingg!

@letmeexplaincfa Жыл бұрын

🙏

@canalwest 6 ай бұрын

Very well explained. Excellent.

@letmeexplaincfa 6 ай бұрын

Thank you very much🙏

@kinsingkwok5670 Жыл бұрын

Thanks a lot from Hong Kong

@letmeexplaincfa Жыл бұрын

You are very welcome😀

@vickyvickyath2994 8 ай бұрын

great explanation 👌

@letmeexplaincfa 8 ай бұрын

Thank you 🙏

@AP-vw1ph 11 ай бұрын

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?

@letmeexplaincfa 11 ай бұрын

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 11 ай бұрын

I will need to update the video, thanks again

@AP-vw1ph 11 ай бұрын

@@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!

@sohamgupta187 6 ай бұрын

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

@juliek5912 4 күн бұрын

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 :)