Performance Attribution
Performance attribution is a critical component of the portfolio evaluation process. Effective performance attribution analysis requires a thorough understanding of …
portfolio management
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 …
University Endowments
University endowments are funds set up by gifts and donations, which are invested to earn returns that provide ongoing support …
Sovereign Wealth Funds
Sovereign wealth funds (SWFs) are investment funds owned by a government. The International Monetary Fund defines five broad categories of …