Re-quantifying risk: A New Denominator for Risk-Adjusted Return Measures — Presentation Detail — Celebration of Scholars

Instructions

Student presentations must have a faculty sponsor.

Abstracts must include a title and a description of the research, scholarship, or creative work. The description should be 150-225 words in length and constructed in a format or style appropriate for the presenter’s discipline.

The following points should be addressed within the selected format or style for the abstract:

A clear statement of the problem or question you pursued, or the scholarly goal or creative theme achieved in your work.
A brief comment about the significance or uniqueness of the work.
A clear description of the methods used to achieve the purpose or goals for the work.
A statement of the conclusions, results, outcomes, or recommendations, or if the work is still in progress, the results you expect to report at the event.

Presenter photographs should be head and shoulder shots comparable to passport photos.

Additional Information

More information is available at carthage.edu/celebration-scholars/. The following are members of the Research, Scholarship, and Creativity Committee who are eager to listen to ideas and answer questions:

Jun Wang
Kim Instenes
John Kirk
Nora Nickels
Andrew Pustina
James Ripley

Re-quantifying risk: A New Denominator for Risk-Adjusted Return Measures

Name: Hunter Sandidge
Major: Finance
Hometown: Rockford
Faculty Sponsor:
Other Sponsors: Wall, Joe
Type of research: Senior thesis

Abstract

Many investors wish to maximize total profit while minimizing the risks associated with such returns. A wide variety of ratios and equations exist to assess the potential return and relative risk of an equity security, fund, or portfolio. This research explores the evolution of return-per-risk analysis and associated ratios. It then proposes an alternative means to assess return per unit of risk incurred, the Sandidge Adjusted Broad Risk (SABR) Ratio, which attempts to account for the idiosyncratic and diversity risk of an equity asset. This model attempts to make an incremental improvement on the decision-making power of the Sharpe Ratio by addressing the problem regarding scenarios where the asset analyzed does not have a zero correlation with a prospective portfolio.

Poster file