QUOTE(river.sand @ Sep 25 2016, 08:01 AM)
Risk free return, something you repeatedly preach, is given by (one of the formula):
Sharpe Ratio = (investment return - risk free rate)/Std-Dev
Now, if Std-Dev for ASx is negligible, the Sharpe Ratio goes towards infinity
You are not practicing what you preach
You wanna Sai-Lang all into ASX FP UTF or not? Sharpe Ratio = (investment return - risk free rate)/Std-Dev
Now, if Std-Dev for ASx is negligible, the Sharpe Ratio goes towards infinity
You are not practicing what you preach
Are you feeling lucky? Well are you, punk?
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I know you are saying the above rhetorically, but bear in mind ASX FP UTF are not exactly follow free market practice.
If you wanna compare apple to apple, you have to see how the ASX non-FP UTF perform against the normal type of UTF. Go to ASNB website and check them out (Choose Amanah Saham Harga Tidak Tetap version)
Comparing the ASX FP UTF to a normal UTF is like saying how come the paralympics 100m record is so slow compared to Usain Bolt's one?
QUOTE
Very important reminder! Also one of the basic rule for using Sharpe ratio is that they must be used to compare peer to peer or risky assets of similar class. For example if you try to compare a balanced fund sharpe ratio with that of a money market fund, sure the MMF will win hands down, but will you follow Sharpe Ratio and sai-lang into that MMF?
This post has been edited by xuzen: Sep 25 2016, 11:28 AM
Sep 25 2016, 11:20 AM

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