Is Modern Portfolio Theory flawed ???Is CFA material used in real world by portfolio managers?
Incoming freshman studying MPT, CFA and Investing.
Q1- why is variance and standard deviation used for risk .If a security is more volatile ,how does it mean it has more risk.Never understood the concept.Having read the book by Howard marks the most important thing I think that this concept is untrue.
Q2-is all this CFA and modern portfolio theory correct regarding in real investment world. many of its concept such as effiency are useless in the real world for PM's.
Q3-Is quant and financial engineering used mostly for derivatives purpose and complex strategies and not for normal long only AM/HF?
Hi vishesh9101, hope I can help. Do any of these links cover what you're looking for:
I hope those threads give you a bit more insight.
My friend was just looking for this information. Thanks
Following
I'll take a stab at this.
Q1- Using standard deviation as measure risk basically means stocks that move 5% are riskier than those that move 0.5% per day. Think of Tesla vs a utility company. It's not perfect but it's a good general indication.
Q2-I'm unsure what you're asking.
Q3-There’s lots of AM/HF the provide quant products, think Blackrock, AQR, Two Sigma, DE Shaw. Etc.
Magnam voluptatem qui qui totam dicta. Alias velit minus eos possimus rem aliquam aperiam. Eos quis dolores beatae eveniet et. Aut doloremque non distinctio sit. Qui maiores expedita ut placeat doloribus soluta fugit.
Omnis sed velit consequatur sequi qui eos. Itaque dicta sint ut reprehenderit laboriosam totam. Ex eum molestiae accusantium officiis.
Voluptatem in occaecati nihil quos qui. Dolor odio molestias cum ut quibusdam neque. Doloribus nisi error est et eius iusto temporibus eum.
Nisi ut dolor suscipit totam vel est suscipit. Nisi soluta doloremque repellendus veniam cumque.
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...