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What is the Alpha Coefficient in Investments
... managing investment funds.
The development of the alpha coefficient dates back to 1968, with Michael Jensen as its author. The economist was concerned with one question: is it possible to assess the effectiveness of a fund manager based on historical returns and their ability to consistently outperform the market?
The approach involved comparing fund returns with a benchmark. To derive the formula, Jensen conducted extensive research, synthesizing information from 115 mutual funds. Subsequently, these ...
BMW and Mercedes Could Return to Russia: What It Means for the Market and Investors?
German auto brands may return to the Russian market as early as 2025. According to the head of Schneider Group, Ulf Schneider, German automakers such as BMW and Mercedes are suffering from sanctions against Russia, losing their share in the international market. Schneider believes ...
Return of Western Brands to Russia: Forecasts and Implications for Business
Western brands are preparing to return to the Russian market. Experts predict that McDonald's, PepsiCo, Coca-Cola, Apple, Microsoft and other companies may resume their operations in Russia by the end of 2025. What does this mean for businesses and consumers, and how are domestic companies ...
Pre-IPO vs. Venture Capital Investments: Which to Choose for Better Returns?
When choosing between investments in pre-IPO companies and venture capital, it is crucial to understand the key differences, risks, and opportunities of each option. In this article, we explore in detail how both types of investments work, what returns they offer, and how to choose the right option for you.
Pre-IPO vs. Venture Capital: Which to Choose for Optimal Returns?
Investing in companies at early stages of their development can yield significant profits but also comes with high risks....
BMW and Mercedes Could Return to Russia: What This Means for the Market and Investors
Amid rising Chinese influence in Russia’s auto market, German automakers BMW and Mercedes are considering a return as early as 2025, according to Schneider Group’s Ulf Schneider. This potential re-entry could rebalance the market, offering Russian consumers more options and providing German brands a path to recoup losses from sanctions. What are the implications ...