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3

The answer is that you may use an approach that includes IRR, but that's not a necessary component of what I would consider a good model. I have seen commercial tools that include them and those that don't. I have also seen practitioners set the variables in packages that include this approach, so that they were not a relevant component of the resulting ...

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IEX is an ATS. The ECN/ATS business is dominated by rampant and well known conflicts of interest. A part of the IEX value proposition from the beginning was to offer an alternative to traders who were disenfranchised by this market structure. If maker-taker rebates are part of your trading business model or if you engage in any strategy that could be deemed ...

2

Assume the weights of the two assets are $w$,$1-w$ respectively;the expected returns and standard deviations are denoted by $\mu$,$\sigma$ with subscripts 1,2,p(for portfolio),i.e,we have $\mu_1$,$\mu_2$,$\mu_p$,$\sigma_1$,$\sigma_2$,$\sigma_p$.The correlation coefficent is $\rho$ Then \sigma_p^2=w^2\sigma_1^2+(1-w)^2\sigma_2^2+2w(1-w)\sigma_1\sigma_2\rho ...

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The concrete (general) answer to part (ii) of my question seems to be contained in Equation 8 of the following link: http://www.columbia.edu/~ks20/FE-Notes/4700-07-Notes-portfolio-I.pdf In particular, interpreting $\sigma$ as volatility, take for example $E_A=0.10,\sigma_A=0.15,E_B=0.25,\sigma_B=0.40$ and $\rho =−0.2$. I get that about 83 percent of the ...

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