Hi, I need to calculate the time-series average returns and standard deviations to the size premiums across the six regions/countries. To do this I believe I need the monthly returns from each category and then from there can get the average returns and standard deviations. Would the correct formula to calculate February in the developed market category be (-1.27/1.59) - 1 which equals -1.80 ?
Hi, I need to calculate the time-series average returns and standard deviations to the size premiums across the six regions/countries. To do this I believe I need the monthly returns from each category and then from there can get the average returns and standard deviations. Would the correct formula to calculate February in the developed market category be (-1.27/1.59) - 1 which equals -1.80 ?
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Assuming the SMB returns are already calculated as the figures represented in the spreadsheet, is the average returns created by averaging all figures and standard deviation via the '=STDEV.S' forumla? subsequently calculating the risk ratio as return/std dev?
by Bartleby Expertthank you for the prompt response to my question. Where did you calculate the 0.79 from in this equation 'SMB (developed market) = (0.79 - (-1.27))/1.59 = 1.80'?
by Bartleby Expert
