In a previous post I introduced two forms of the differential return equation that are included in the CIPM curriculum at the Principles Level: differential return using standard deviation differential return using beta If it seems that the differential return formula is just another confusing formula to memorize, it may help to recognize that the […]
Read More beta, CIPM, CIPM Principles, differential return, Jensen's alpha, performance measurementDifferential return is a risk-adjusted performance measure that many CIPM candidates have not see before, and as a result, I get a lot of questions asking what exactly is the differential return… what does it mean and how should it be interpreted. Thus, I have decided to focus on this measure in a series of […]
Read More beta, CIPM, CIPM Principles, differential return, performance measurement, risk, risk adjusted performance measure, risk adjusted return, risk measurement, Sharpe ratio, standard deviation, subtraction alpha, Treynor ratio