Guideline Questions:
- How much risk am I prepared to take to meet benchmark rate of return?
- What is the time period for measurement of performance relative to objectives?
- What is my preference for asset mix, especially relating to stocks?
- What are the cash flow / liquidity requirements?
- Do I want to expand into foreign investments, private placements, options, futures, etc.?
Performance Measurement:
Measurements conducted will be as follows:
- Internal rate of return
- Time-weighted rate of return (average of rate of return per subinterval, divided at dates of cash flow into or out of the portfolio)
- Portfolio alpha value
- Portfolio beta value
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