Saturday, January 12, 2008

Trading Puzzle



The red in the chart is the NASDAQ 100 index. The blue and green are two simple trading strategies. The blue strategy has a beta of 0.84 to the index and annual alpha of 11.4%. The green strategy has beta of 0.69 and alpha of 24.0%.

What are the two strategies?

2 comments:

the finance ninja said...

I have to say this chart means 100% nothing to me, which really says a lot about my smarts on charts, systems, and strategies.

mOOm said...

Did you go to the post where i reveal the secret?