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Markets

Naïve Diversification and Regret When Investing

Nearly all finance and investing books, writers, and academics mention diversification, periodic portfolio updates, rebalance illiquid holdings, and risk-adjusted-performance evaluations. Do you think these finance professionals consistently implement these strategies to own their lives? As you may guess from the beginning of the article they don’t. Jason Zweig, the writer of “Your Money & Your

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Stock Volatility and Beta Coefficient: BIST 30 Index

Beta coefficient The beta coefficient indicates the risk according to the stock market index. In other words, it is the numerical expression of the market risk of the stock. The beta of the stock represents the index’s volatility. Beta Coefficient Signals The beta coefficient: =1, the stock movement is the same as the index (average

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Investors Should Beware the Shortcomings of the Sharpe Ratio

One of the most pronounced developments in the finance field is the Sharpe ratio. Nobel Laureate William Sharpe developed this risk-adjusted measure in 1966. The ratio is computed by dividing excess return by the standard deviation to calculate return per unit of deviation. The Sharpe Ratio The Sharpe ratio was structured as forward-looking for determining

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