What are the possible metrics for evaluating annual performance of a portfolio?
What are the factors of portfolio evaluation?
5 Most Important Factors to Increase Your Portfolio Value
- Years of Compound Growth. Compound or exponential growth is THE most powerful investment principle. …
- The Amount of Money Invested. …
- Your Portfolio Rate of Return. …
- Your Asset Allocation. …
- The Amount of Taxes You Pay.
How do you evaluate portfolio management?
The portfolio performance evaluation can be made based on the following methods: Sharpe’s Measure. Treynor’s Measure. Jensen’s Measure.
2. Treynor’s Measure
- Tn = Treynor’s measure of performance.
- Rn = Return on the portfolio.
- Rf = Risk free rate of return.
- βm = Beta of the portfolio ( A measure of systematic risk)