Econometric Modeling to Measure the Efficiency of Sharpe’s Ratio with Strong Autocorrelation Portfolios

Fecha

2022

Profesor Guía

Formato del documento

Articulo

ORCID Autor

Título de la revista

ISSN de la revista

Título del volumen

Editor

Wiley

Ubicación

ISBN

ISSN

item.page.issne

Facultad

Facultad de Ciencias Económicas y Administrativas

Departamento o Escuela

Escuela de Auditoria

Determinador

Recolector

Especie

Nota general

Resumen

Sharpe’s ratio is the most widely used index for establishing an order of priority for the portfolios to which the investor has access, and the purpose of this investigation is to verify that Sharpe’s ratio allows decisions to be made in investment portfolios considering different financial market conditions. The research is carried out by autoregressive model (AR) of the financial series of returns using Sharpe’s ratio for evaluations looking over the priority of financial assets which the investor can access while observing the effects that can cause autocorrelated series in evaluation measures for financial assets. The results presented in this study confirm the hypothesis proposed in which Sharpe’s ratio allows decisions to be made in the selection of investment portfolios under normal conditions thanks to the definition of a robustness function, whose empirical estimation shows an average 73% explanation of the variance in the degradation of the Spearman coefficient for each of the performance measures; however, given the presence of autocorrelation in the financial series of returns, this similarity is broken.

Descripción

Lugar de Publicación

Auspiciador

Palabras clave

Licencia

© 2022 Karime Chahuán Jimémez et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

URL Licencia