In private equity and portfolio management, “alpha” is considered the key performance indicator: it represents the value added that a fund or company generates beyond the market. Yet in the classic single-index model (CAPM), this alpha does not appear explicitly at all. This raises the question: how exactly are alpha, beta, and residual variance related—and why is it not enough to look only at alpha?
In the accompanying article, we have given some thought to this topic.
Youtube Linkedin Envelope Table of Contents In private equity and portfolio management, “alpha” is considered the key performance indicator: it represents the value added that
Youtube Linkedin Envelope Table of Contents Have you ever wondered why, when calculating the standard deviation, we sometimes divide by 𝓷 and sometimes by 𝒏-1?
Youtube Linkedin Envelope Table of Contents In corporate planning practice, the cash flow statement has often been neglected to date, even though it represents a
Youtube Linkedin Envelope Table of Contents In an increasingly volatile and crisis-prone world, traditional deterministic management planning is reaching its limits. Target-value-oriented planning systematically ignores
Youtube Linkedin Envelope Table of Contents Exactly 100 years ago, in 1925, Werner Heisenberg published his groundbreaking article: 👉 “On the Quantum-Theoretical Reinterpretation of Kinematic
The semi-standard deviation (also downside deviation) measures the dispersion below a reference value (usually the mean or a target return such as 0%).
