Re[2]: AW: Position Sizing Effectiveness

[Ross Bond <Ross.Bond@xxxxxxxxxx>]

Hello Gabriel,

Thanks for that, good thinking!

So if I have got this right, the calc would be:

 [RoA with position sizing /RoA without position sizing]?

-- 
Best regards,
 Ross                       mail to: Ross.Bond@xxxxxxxxxx

Friday, February 13, 2004, 2:31:04 AM, you wrote:

GG> Ross,

GG> I do not have a lot to contribute, but the small realization I
GG> made once when thinking about this. It seems to me that you must
GG> normalize the returns to account for the effect of leverage and
GG> then compare them to unlevered returns. That way you can analyze
GG> how much "value" the position sizing added. Just my 2 cents.

GG> Gabriel