Does positive assymetry (convex curve) mean that the portfolio generates higher returns than benchmark during all market conditions? In that case, answer to question 4 can be b and c both.
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A Capture Ratio greater than 1, does not necessarily indicate that the portfolio has positive asymmetry of return. Positive asymmetry of return, also known as “skewness,” refers to the tendency of the portfolio to have larger positive returns than negative returns. A portfolio with positive skewness will have a higher probability of experiencing larger positive returns than larger negative returns.
The Capture Ratio does not take into account the distribution of returns or the presence of skewness in the portfolio’s returns. Therefore, a portfolio with a Capture Ratio greater than 1 may still have a symmetric distribution of returns and may not exhibit positive skewness.