rlsrachaellouisesmith
Ton up Member
Hi
In question X4.3(ii) we are asked to calculate another risk adjusted measure, and the Treynor is calculated. However, I did not think that this was suitable to use to compare two managers as it is the absolute outperformance for a pre-specified level of risk. If the level of risk for A&B are not the same or similar then it would be inappropriate to compare.
Would you agree? Or am I missing something.
Thank you
In question X4.3(ii) we are asked to calculate another risk adjusted measure, and the Treynor is calculated. However, I did not think that this was suitable to use to compare two managers as it is the absolute outperformance for a pre-specified level of risk. If the level of risk for A&B are not the same or similar then it would be inappropriate to compare.
Would you agree? Or am I missing something.
Thank you