n African Finance Journal - Finance letter evaluating portfolio performance
|Article Title||Finance letter evaluating portfolio performance|
|© Publisher:||AfricaGrowth Institute|
|Journal||African Finance Journal|
|Author||N. Biekpe and K. Jenkins|
|Publication Date||Jan 2001|
|Pages||51 - 55|
When evaluating performance it is important to determine not only the rate of return that a portfolio has earned, but also how this rate compares to a benchmark, such as the overall movement in the market. Even more correct would be to compare the rate of return with that of an investment fund with similar risk characteristics, thereby compensating for differences in risk. It is important not to, for instance, compare bond funds to small capitalisation stock or emerging markets funds.
Article metrics loading...