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Performance Measurement And Evaluation

Author

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  • Plantinga, Auke

Abstract

This chapter discusses methods and techniques for measuring and evaluating performance for the purpose of controlling the investment process. However, many of the methods discussed in this chapter are also used in communicating investment performance between the investment management company and it’s (potential) customers. Therefore, performance measurements also play an important role in the competition between investments management companies. Substantial evidence from the net sales of mutual funds shows that investors buy mutual funds with good past performance records although they fail to sell funds with bad past performance.

Suggested Citation

  • Plantinga, Auke, 2007. "Performance Measurement And Evaluation," MPRA Paper 5048, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:5048
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    File URL: https://mpra.ub.uni-muenchen.de/5048/1/MPRA_paper_5048.pdf
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    References listed on IDEAS

    as
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    5. Auke Plantinga & Robert van der Meer, 1995. "Liability-driven Performance Attribution," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 20(1), pages 16-29, January.
    6. Peter O. Dietz, 1968. "Components Of A Measurement Model: Rate Of Return, Risk, And Timing," Journal of Finance, American Finance Association, vol. 23(2), pages 267-275, May.
    7. Elton, Edwin J. & Gruber, Martin J., 1992. "Optimal investment strategies with investor liabilities," Journal of Banking & Finance, Elsevier, vol. 16(5), pages 869-890, September.
    8. Guercio, Diane Del & Tkac, Paula A., 2002. "The Determinants of the Flow of Funds of Managed Portfolios: Mutual Funds vs. Pension Funds," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 37(4), pages 523-557, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Performance measurement; risk-adjusted performance;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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