Hi there. I would like to ask how to calculate the downside semi variance of return? The answer given, it says that 500000^2/24. Can I know how the 24 is formed? Thanks in advance.
I assume you mean CT8's Sept 2005 Q1b. Using the yellow book formula for Uniform distribution (the denominator there is 12), and also the fact that the uniform distribution is symmetrical about its mean so that the downside semi-variance is simply equal to half of the variance (multiply the denominator by 2), resulting in the 24 that you see.
