Slide 1BUILDING SHARPE OPTIMIZATION STOCK PORTFOLIOS AND PERFORMANCE ANALYSIS Slide 2 SCOPE OF PRESENTATION INTRODUCTION SHARPE RATIO & OTHER PERFORMANCE MEASURES COMPARING…

Slide 1Aswath Damodaran1 Session 5: Betas Aswath Damodaran Slide 2 2 Estimating Beta The standard procedure for estimating betas is to regress stock returns (R j ) against…

Performance Evaluation and Risk Management Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 13 It is Not the Return On My Investment…

Slide 1 13-1 Slide 2 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin 13 Performance Evaluation and Risk Management Slide 3 13-3…

Slide 1 Performance Evaluation Measures The raw return on a portfolio, RP, is simply the total percentage return on a portfolio. The raw return is a naive performance evaluation…