Customer Reviews

Measuring Investment Performance: Calculating and Evaluating Investment Risk and Return

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3 star:		(2)
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1 star:		(1)

 

 

A good reference book for the basics. It covers rates of return and differences between calculation methodologies. There are some good examples (however, there are some mistakes in these, pages 32, 38 and maybe elsewhere) and the formulae for calculating the results. There doesn't appear to be that much on risk beyond the basic concept and introduction to the topic. In summary, a good general (and gentle) introduction to the glorious world of Performance Measurement, but after reading this you would probably need something more in-depth to expand on certain topics.

A great reference book for any registered representative, or investment advisor who wants to understand rate or return (ROR), the difference between time and dollar weighted rates of return, and the different methods of calculating each. There are examples to demonstrate the concepts and the formulas for calculating the results. We were mainly interested in the first half of the book which dealt with producing the rates. The second half seemed to deal more with reporting requirements for investment companies (very important if it pertains to you.) The only thing that could be added to this publication would be Excel spreadsheets on a CD ROM. If you provide clients with Rate of Return information, this is a must read.

Unless you have no clue about performance do not buy this book. This is not even "ABC" of performance, it is the TeleTubby of performance. Majority of the info is either in AIMR PPS or in basic Finance literature. Unless you can get this book for deep deep discount do not buy it.

If you are curious about the general breadth of issues related to measurement of investment return, this is a good book. There is a little less on risk. I personally would have liked more examples and math, more depth in general.