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Portfolio managers Martin and Krueger each manage $3.6 million funds. Martin has perfect foresight, and the call option value of his perfect foresight is $540,000.
Portfolio managers Martin and Krueger each manage $3.6 million funds. Martin has perfect foresight, and the call option value of his perfect foresight is $540,000. Krueger is an imperfect forecaster and correctly predicts 50% of all bull markets and 57% of all bear markets. The correctmeasure of timing ability for Krueger is 107% 7% 62% 60%
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