Professional Documents
Culture Documents
BB-13-39
Chapter 22
EVALUATION OF INVESTMENT
PORTFOLIO PERFORMANCE
Chapter sequence
Equates all the cash flows including ending market value with
the beginning market value of the portfolio
MISLEADING MEASURE
A PORTFOLIO manager begins with 1000$ halfway through the
year client withdraw 200$ and at the end of year portfolio
performance will be 910.
Investor will not decrease the value of portfolio by 90 or 10%
Time weighted returns (TWR)