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Measurement of Investment Performance

Published online by Cambridge University Press:  19 October 2009

Extract

With the increasing emphasis on the performance of managers of institutional portfolios, it becomes important to develop an accurate and complete measure of investment results. Accordingly, this study will be devoted to clarification and possible resolution of the following issues:

1. How may operating results be segregated from contributions and withdrawals of capital?

2. How may the “dollar weighting” inherent in compound rates of return be eliminated?

3. Should investment, in the context of return on investment, be cost-based or value-based?

4. How should risk be quantified?

5. Can both risk and return be considered in one composite measure of investment performance?

Type
Research Article
Copyright
Copyright © School of Business Administration, University of Washington 1968

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References

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