What are the possible metrics for evaluating annual performance of a portfolio? - KamilTaylan.blog
22 June 2022 16:45

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

  1. Years of Compound Growth. Compound or exponential growth is THE most powerful investment principle. …
  2. The Amount of Money Invested. …
  3. Your Portfolio Rate of Return. …
  4. Your Asset Allocation. …
  5. 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

  1. Tn = Treynor’s measure of performance.
  2. Rn = Return on the portfolio.
  3. Rf = Risk free rate of return.
  4. βm = Beta of the portfolio ( A measure of systematic risk)