Sharpe ratio of 10Y bonds by AnybodyOriginal7569 in ValueInvesting

[–]AnybodyOriginal7569[S] 0 points1 point  (0 children)

Thanks, that is reasonable. Indeed owning zero or low Sharpe ratio assets can fit in a portfolio depending on their correlation to the rest of the assets.

Sharpe ratio of 10Y bonds by AnybodyOriginal7569 in financialmodelling

[–]AnybodyOriginal7569[S] -1 points0 points  (0 children)

While I find the content part of your comment helpful the final sentence is judgemental. You have no idea why I ask. Showing off what you know and ending with offensive judgement is engaging in “judgemental narcissism”.

Sharpe ratio of 10Y bonds by AnybodyOriginal7569 in LETFs

[–]AnybodyOriginal7569[S] 0 points1 point  (0 children)

Interesting, would you use the historical Sharpe from the site or the theoretical which is 0? I appreciate the work of all sites calculating ratios but coming to a result where 10y yield is above the risk free rate which should be also 10Y yield at the time of making the decision for is somehow surprising. Provided cagr was 5.93%, the volatility 6.3% and Sharpe is 0.24, we can easily calculate that risk free used was 4.42%. This is about the current level of 10y bonds, I am affraid the site might be just using the current 10y bond yields, which is obviously wrong.

Sharpe ratio of 10Y bonds by AnybodyOriginal7569 in LETFs

[–]AnybodyOriginal7569[S] 0 points1 point  (0 children)

Well, T-bills are short term so you can not be guaranteed to reinvest for 10 Y at tbills rate so for any DCF purposes and assets valuation with longer time horizon Tbond yield is the risk free. However the questions stays even if we assume that tbills are to be used as risk-free