Post by yogibearbull on Jan 30, 2024 12:47:43 GMT
www.morningstar.com/stocks/beta-isnt-dead
My comments from Twitter LINK
Interesting take on #Beta.
Significance of early work on #MPT was its application of #Statistics to investments. Slope ("beta") & intercept ("alpha) of #LinearRegression were already ancient concepts then.
Now they are commonly available tools. #Morningstar won't exist without such tools.
Sharpe's claim to fame is the #SharpeRatio that interestingly doesn't depend on MPT - #StandardDeviation can be found directly (& is more stable than beta).
My comments from Twitter LINK
Interesting take on #Beta.
Significance of early work on #MPT was its application of #Statistics to investments. Slope ("beta") & intercept ("alpha) of #LinearRegression were already ancient concepts then.
Now they are commonly available tools. #Morningstar won't exist without such tools.
Sharpe's claim to fame is the #SharpeRatio that interestingly doesn't depend on MPT - #StandardDeviation can be found directly (& is more stable than beta).