Risk Attribution
Selecting the most appropriate risk metric for attribution analysis requires an in-depth understanding of the investment process of the portfolio …
level III
Approaches to Return Attribution
Arithmetic Attribution and Geometric Attribution Return attribution lets us identify which investment decisions taken by the fund manager were successful …
Performance Attribution
Performance attribution is a critical component of the portfolio evaluation process. Effective performance attribution analysis requires a thorough understanding of …
Components of Performance Evaluation
Performance evaluation includes three primary components, each corresponding to a specific question we need to answer to evaluate a portfolio’s …
Evaluating Trade Execution
Trade Cost Measurement Trading costs are either explicit in that they are easily visible or implicit in that they are …
Trade Execution
Once the appropriate trade strategy is determined by the portfolio manager and the trader, the trade must be executed in …
Trading Strategies and Strategy Selection
Trade Motivations Profit seeking. Active portfolio managers seek to outperform their benchmark (trading securities they believe to be mispriced. Managers need …
Balance Sheet Management and Asset Allocation
For both banks and insurance companies, the primary overall objective of the company is to maximize the market value of …
Banks and Insurers: Overview
Banks The primary function of a bank is to earn profits by taking deposits from savers and making loans to …
Private Foundations
Foundations are nonprofit institutions set up to make grants to support specified charitable causes. The focus of this reading is …