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illyfrancis edited this page Jul 8, 2013 · 36 revisions

Global custody

For Funds (Mutual funds / Exchange traded funds)

  • NAV - (Net Asset Value)[http://www.investopedia.com/video/play/net-asset-value/]
    • video explaining...

General

  • Standard deviation

    • or variance, so higher the SD more risky it is
    • For example, if the annual rate of return of a security over five terms

    Given monthly returns of 2%, 7.5%, 1%, 6%, 1.5% the average is 3.6% then (3.6 - 2)^2 = 2.56 (3.6 - 7.5)^2 = 15.21 (3.6 - 1)^2 = 6.76 (3.6 - 6)^2 = 5.76 (3.6 - 1.5)^2 = 4.41 Sum = 34.7 / (5 terms - 1) = 8.675 sqrt(8.675) = 2.9 (standard deviation)

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