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How may beta coefficients be used to standardize the returns for risk to permit comparisons of mutual fund performance?
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∙ 12y ago
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∙ 12y ago
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How may beta coefficients be used to standardize returns for risk to permit comparisons of mutual fund performance?
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Mutual funds performance is best measured by?
There are a few key ways to measure the performance of mutual funds: Total return - The total return of a mutual fund includes dividends, capital gains distributions, and the change in net asset value (NAV) per share over a given time period. This provides the most complete picture of a fund's overall performance. Sharpe ratio - The Sharpe ratio measures a fund's return relative to the amount of risk taken to generate that return. It provides insight into the fund's risk-adjusted returns. The higher the Sharpe ratio, the better the risk-adjusted returns. Standard deviation - Standard deviation measures the volatility or variability of a fund's returns over time. A higher standard deviation indicates wider fluctuations in returns from year to year. This helps gauge the fund's risk levels. Benchmark comparisons - Comparing a mutual fund's returns to an appropriate benchmark index (e.g. S&P 500 index for large-cap US equity funds) provides perspective on how well the fund performed versus the broader market. Outperforming the benchmark generally indicates good fund management. In summary, total return, risk-adjusted return metrics like Sharpe ratio, volatility measures like standard deviation, and benchmark comparisons together provide the most comprehensive view of a mutual fund's overall performance. These metrics taken together can determine if a fund successfully met its investment objective over a period.
What is the historical volatility of a stock?
The historical volatility of a stock is the variation of the returns over a period of time (say, over the last twelve months). The variation of the returns is usually taken as the standard deviation of the returns. You need a spreadsheet to calculate historical volatility (see the related link for an example)
What is used as a measure of total risk?
The standard deviation or volatility (square root of the variance) of returns.
What shape would the probability distribution have for completely certain returns?
a straight, vertical line, i.e., zero variability
How may beta coefficients be used to standardize returns for risk to permit comparisons of mutual fund performance?
3
Mutual funds performance is best measured by?
There are a few key ways to measure the performance of mutual funds: Total return - The total return of a mutual fund includes dividends, capital gains distributions, and the change in net asset value (NAV) per share over a given time period. This provides the most complete picture of a fund's overall performance. Sharpe ratio - The Sharpe ratio measures a fund's return relative to the amount of risk taken to generate that return. It provides insight into the fund's risk-adjusted returns. The higher the Sharpe ratio, the better the risk-adjusted returns. Standard deviation - Standard deviation measures the volatility or variability of a fund's returns over time. A higher standard deviation indicates wider fluctuations in returns from year to year. This helps gauge the fund's risk levels. Benchmark comparisons - Comparing a mutual fund's returns to an appropriate benchmark index (e.g. S&P 500 index for large-cap US equity funds) provides perspective on how well the fund performed versus the broader market. Outperforming the benchmark generally indicates good fund management. In summary, total return, risk-adjusted return metrics like Sharpe ratio, volatility measures like standard deviation, and benchmark comparisons together provide the most comprehensive view of a mutual fund's overall performance. These metrics taken together can determine if a fund successfully met its investment objective over a period.
Why is it important to do comparsions about money investments?
There are various benefits or reasons why it is important to do comparisons about money investments. One, is to find out which product suits you in relation to risk and affordability and also to check which plan has the best returns.
What has the author H M Fisher written?
H. M. Fisher has written: 'Comparisons of economic returns from grain crops' -- subject(s): Cost effectiveness, Economic aspects of Grain, Grain, Grain trade
What Performance of mutual funds?
In order to successfully select mutual fund the investor should Focus on the elements most important to good future performance. - Average returns based on Net Asset Value daily changes - Risk of loss - Persistence of good performance -- high returns at low risk of loss. There are many funds available that can offer a high probability of above market returns at low risk. This does not mean that you need to disregard a belief that the market will go up in the short term. It does mean that you should temper that view with an understanding of how funds might perform if your market growth assumptions are incorrect.
Will a cold air intake improve the performance of a 2002 BMW 540 6 speed?
You have to think about the point of diminishing returns: at which spending a ton of money gets you very little. How much performance to you need in a country where the top legal speed is 65?
In volatile market what can give better returns, short term stock trading or long term investments?
Long term investing should always be considered the primary option over short tern stock trading. However, past performance is no gurantee of future returns.
Understanding The Official IRS Tax Software System?
With the prevalence of online communications, the IRS has developed a core type of tax software that can be used by consumers. This program is not able to be used independently, but instead can be accessed through authorized commercial software and preparation companies. The official IRS tax software helps to standardize the process of filing returns electronically. Almost any piece of software that states that it has the capacity to file returns electronically can interface with the official IRS tax software.
What are some ways to measure the performance of mutual funds?
There are thousands of different mutual funds available to investors and their performance is reported to shareholders in quarterly and annual reports. The performance of most mutual funds can also be found on financial websites.The most common ways to measure the performance of a mutual fund is to compare it to a broad market index such as the S&P 500 or to another index category that closely mirrors the investments held by the mutual fund. For example, if examining the returns of a gold mining mutual fund it would not make sense to compare investment returns to the S&P 500 since a gold mutual fund focuses on a narrow market sector related to gold mining shares and/or the price of gold. In this case an investor would be more interested in the relative performance of his gold mutual fund compared to other gold mutual funds or to an index such as the Market Vectors Gold Miners ETF (GDX) that measures returns of the entire gold mining industry.
How do I know if my stock market broker is doing a good job?
It may sound like a rather obvious answer, but the best way to know how well your broker is doing is by the returns you're getting on your investments. You can evaluate your stockbroker's performance in a pretty simple way: are his investments giving you a good returns? If not, it's time to find another broker.
What war the 3 stages of production?
Three stages of production are increasing marginal returns, diminishing marginal returns, and negative marginal returns.
What has the author Scott Loring Thomas written?
Scott Loring Thomas has written: 'Deferred costs and economic returns to college major, quality, performance' -- subject(s): College graduates, Economic conditions, Employment
