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Singer-Terhar formulas

December 17, 2017

Std * Correlation with GIM * Sharpe Ratio = ERP1

Std * Sharpe Ratio = ERP2

Risk Premium = (Degree of Integration * ERP1) + ((1 – Degree of Integration) * ERP2)

Sharpe ratio of Global Market ≈ .28

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From → Asset Valuation

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