basic question on statistical functions

[gbfabiani]

Hi Mark, I was trying to play a bit with Alpha Beta etc.

I went to the help guide and through a few old posts, so I created a custom report and I am now giving a look to what sort of numbers it shows me.
My key doubts are on the time scale .

I am using FM since july 2011 , so I have just a bit less than 3 years of historical data . First question is , do I have to set comparison Period to 5 years, 3 or less ?

Once I fix the comparison period, assume I run the report on the whole period: I will have investments 3 years old, and investments say 6 month or even a week old. On the investment 6 month old say the Beta, will it be calculated over the 6 months I owned it or on the whole period ??

In different words, the Beta I will get for the sub.portfolios and the main portfolio, will they represent the weighted average of my specific risk, or the weighted average of betas of a portfolio who considers the investments I own today, as I had them from day one ?

If the latter is taken , so the program calculate back even if I didn't owned the investements in the past, do I have to run historical data as back as possible to have an history ? ( easy for shares, much less for bonds) .

Hope I had explained properly my questions
regards giovanni

[Mark]

Hi giovanni,

The calculations are done from the ending report date, back the "comparison period" you set. The "interpolation range" options are used to control whether data is interpolated prior to you owning it or not. By default, it will not interpolate data from before you owned it. If you'd like to know about the calculation details, you can see the online help topic for each metric:

http://fundmanagersoftware.com/help/def ... ation.html
http://fundmanagersoftware.com/help/def ... ation.html