Constructing a high Sharpe ratio portfolio, paired with sensible leverage, is the key to achieving meaningful returns with tolerable risk. We will make some simplifying assumptions to build intuition, derive a set of formulas with accompanying figures, and run a simple simulation to demonstrate what is required to construct and monetize a high Sharpe ratio … Some portfolio construction heuristics Read More » The post Some portfolio construction heuristics appeared first on Outcast Beta.
