Downside Deviation as a Risk Measure

This article provides an Excel spreadsheet to calculate downside deviation (including VBA and a matrix formula). It also discusses why downside deviation is a better risk measure than the standard deviation.

Black-Scholes – a paper house


The 1987 stock market crash had its roots in the misplaced faith the finance industry had in the Black-Scholes framework for option pricing.

Forex, Bollinger Bands, and Excel

If you’re a regular traveller, you’ll know that changing money from one currency to another can be a constantly changing battleground. Foreign exchange rates (or Forex), change all the time, and what can seem like a good rate can disappear within days.

Why I decided to invest in the BMO Resource Fund

A few months ago I started looking at the BMO Resource Fund. In the past I’ve based far too much of my decision on historical returns. Historical returns are easy to understand, and I usually opt for the path of least work when investing. That’s simply human nature.

Financial Dictionary

Insuring your long-term financial stability shouldn’t be a chore, but it often is. The financial services industry are far too keen on acronyms, jargon and in-speak. In this section, I’m going to define several terms that everyone should know.

The Sharpe Ratio

Hedge funds traditionally use benchmarks like the Sharpe Ratio and Sortino Ratio to gauge the risk-efficiency of portfolios. The Sharpe …