{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

KIC000030 - I I Appraisal Ratio • The appraisal ratio...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: [ I I / Appraisal Ratio • The appraisal ratio measures abnonnaI return per unit of risk that in principle could be diversified away by holding the market portfolio. AR= a p a, p • This measure is useful when ~rtfolio in ffrtJ9 an ~&4~L..portfolio r{}~ with the \\ .-+............... portfolio. Performance Attribution • Performance attribution decomposes o.Yerl!ll.Performance into sub-co~onents resulting from ";~;'::T'-':::""- <1\\Q(l1'bga or&1.Unhl §Jfcl1Qn decisions. I • The attribution method explains the difference in returns between a managed portfolio, P, and a selected benchmark portfolio, B, called the "bogey". Performance Attribution: Example • Suppose an active portfolio P is invested 60% in equities, 30% in bonds, and 10% in money market securities. • Also, suppose that you consider an asset allocatiou of 50% in equities, 30% in bonds, and 20% in cash to be neutral....
View Full Document

{[ snackBarMessage ]}

Page1 / 2

KIC000030 - I I Appraisal Ratio • The appraisal ratio...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online