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Measurement and Positive Study of Funds’ Risk-Adjusted Return
Author: GuoZuoLi
Tutor: WuKe
School: Huazhong University of Science and Technology
Course: Finance
Keywords: β coefficient Variance Downside risks Risk-adjusted return
CLC: F224
Type: Master's thesis
Year: 2005
Downloads: 172
Quote: 1
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Abstract
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China 's fund market in recent years has been extremely rapid development of the mature foreign market development experience , our fund rating system should be established as soon as possible , to help investors rational investment and supervision of fund management companies . China 's greater use net income indicators , but Markowitz \. How to measure risk , that is to select what kind of indicators to measure the risk , the paper first examines the proportion of the total risk of systemic risk by the coefficient of determination R 2 , the study found a higher system of China 's fund market risk ; thesis by analyzing stock a portfolio of funds and bond funds , that set the benchmark portfolio unreasonable ; significant test and correlation test using the regression coefficient β coefficient and the yield does not exist CAPM theory said positive linear relationship ; the β coefficient CHOW inspection confirmed that most of the funds are not with stability . Second σ2 study in each other's difference , kurtosis and skewness statistics by analysis of the rate of return , we confirmed that its normal distribution assumption does not hold ; rise and downside risks dual concern does not meet investors understand the risks . Therefore , we need to take a new risk analysis (Risk Analysis) method . Choose because of the the beta coefficient existence of market benchmarks problems and related issues , as well the variance existing income non- normal distribution as well as investors on the downside risks to the attention of making traditional Sharpe ratio risk-adjusted profitability metrics have certain limitations , so we build a new risk results to adjust the indicators ( MRAR ) and weekly yield of 16 open-end fund stock through empirical research , statistical analysis , calculated the sample the Fund 's MRAR and the Sharpe ratio , and use consistency analysis confirmed that the two indicators are highly correlated .
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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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