Unformatted text preview: orrelation.
With a correlation closer to positive one I could be at ease that my portfolio would perform at
least as well as the index. This is not the case for my current portfolio however. My portfolio
currently has a correlation of -0.6251 indicating that it is traveling in the opposite direction of the
index, which explains why my arithmetic return (-2.5915%) and geometric return (-2.6593%) are
so far off from the arithmetic and geometric return of the index that are 0.7872% and 0.7841%
Throughout this project the most important thing I have learned would be the time and
effort it takes to acquire a strong portfolio that will project a h...
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This document was uploaded on 03/05/2014 for the course FMIS 3644 at University of Minnesota Duluth.
- Spring '14