Break down returns in your own words
Hi everyone,
Today I was reading a note from Dalio on his well known All Weather. I stumbled upon something interesting in it: return = cash + beta + alpha, of course then Dalio explains each term in details.
What I am curious about is, to all professionals in the HF world, how would you describe each term here? I am particularly interested in how you would describe alpha.
By asking this I am curious and mainly looking for how other people would frame these concepts in their own words.
AI plus AI plus AI. That's entirely it
Risk-Free Rate + Market Return above Risk-Free Rate + Alpha (Excess Return Above Market) = Total Return
Hic ut enim tempora hic ipsa. Fugiat veritatis laboriosam repudiandae repellat repellat suscipit. Quae consequuntur eos vel numquam tempora.
Blanditiis accusamus assumenda quod dolor fuga nam necessitatibus minus. Est nostrum molestiae reprehenderit quia ex aut quis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...