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  2. Performance attribution - Wikipedia

    en.wikipedia.org/wiki/Performance_attribution

    Performance attribution, or investment performance attribution is a set of techniques that performance analysts use to explain why a portfolio's performance differed from the benchmark. This difference between the portfolio return and the benchmark return is known as the active return .

  3. Roll's critique - Wikipedia

    en.wikipedia.org/wiki/Roll's_critique

    The market portfolio is unobservable: The market portfolio in practice would necessarily include every single possible available asset, including real estate, precious metals, stamp collections, jewelry, and anything with any worth. The returns on all possible investments opportunities are unobservable.

  4. Capital asset pricing model - Wikipedia

    en.wikipedia.org/wiki/Capital_asset_pricing_model

    An estimation of the CAPM and the security market line (purple) for the Dow Jones Industrial Average over 3 years for monthly data.. In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio.

  5. Sharpe ratio - Wikipedia

    en.wikipedia.org/wiki/Sharpe_ratio

    Goetzmann, Ingersoll, Spiegel, and Welch (2002) determined that the best strategy to maximize a portfolio's Sharpe ratio, when both securities and options contracts on these securities are available for investment, is a portfolio of selling one out-of-the-money call and selling one out-of-the-money put. This portfolio generates an immediate ...

  6. Omega ratio - Wikipedia

    en.wikipedia.org/wiki/Omega_ratio

    The standard form of the Omega ratio is a non-convex function, but it is possible to optimize a transformed version using linear programming. [4] To begin with, Kapsos et al. show that the Omega ratio of a portfolio is: = ⁡ ⁡ [() +] + The optimization problem that maximizes the Omega ratio is given by: ⁡ ⁡ [() +], ⁡ (), =, The objective function is non-convex, so several ...

  7. Performance appraisal - Wikipedia

    en.wikipedia.org/wiki/Performance_appraisal

    A performance appraisal, also referred to as a performance review, performance evaluation, [1] (career) development discussion, [2] or employee appraisal, sometimes shortened to "PA", [a] is a periodic and systematic process whereby the job performance of an employee is documented and evaluated. This is done after employees are trained about ...

  8. Benchmarking - Wikipedia

    en.wikipedia.org/wiki/Benchmarking

    Benchmarking is the practice of comparing business processes and performance metrics to industry bests and best practices from other companies. Dimensions typically measured are quality, time and cost.

  9. Investment management - Wikipedia

    en.wikipedia.org/wiki/Investment_management

    The information ratio is a more general form of the Sharpe ratio in which the risk-free asset is replaced by a benchmark portfolio. This measure is relative, as it evaluates portfolio performance about a benchmark, making the result strongly dependent on this benchmark choice.

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