Post #2737 by agehlot on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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Thanks Elan. As always you have been a great help in my understanding the concept.

However, did you mean Method 1 is correct?

You said:

As I wrote before, I think 2 is wrong because by "annualizing" you are doubling the slope. It has no effect on the ranking of stocks by RRS, but when you subtract the volatility measure it has half the effect on the doubled slope.

So I think method 2 is correct.

AJ

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