Here is my opinion of CAPM and Sharpe Ratio while you research your potential profitable quant trading strategy

(Last Updated On: September 14, 2013)

Here is my opinion of CAPM and Sharpe Ratio while you research your potential profitable quant trading strategy

This came in from some one on my email list:
Question:
do you know much about capm or sharpe ration?
http://www.investinganswers.com/financial-dictionary/stock-valuation/capital-asset-pricing-model-capm-1125
I want to write my own sharpe ratio and was hoping someone can help clarify a few things

My response:

I am no expert but I do believe CAPM is really decent for finding beta. That is about it.

Sharpe ratio is an industry standard to find the performance on your trading strategies.

More info on the function from Matlab from:

http://www.mathworks.com/discovery/capm.html

http://www.mathworks.com/help/finance/sharpe.html

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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs