Tuesday, April 14, 2015

Guideline Statement, Performance Measurement

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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