Performance Evaluation

CFA Level 3 · 5 questions

Key Takeaways

Covers performance attribution, GIPS-compliant return reporting, and evaluating whether a manager's results reflect skill or luck.

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Question 1Easy

Which of the following best describes the primary purpose of performance attribution analysis?

A.To decompose a portfolio's returns into components attributable to manager decisions and market factorsB.To determine whether a manager should be fired based on absolute return performanceC.To establish the benchmark that should be used for a portfolioD.To calculate the standard deviation of portfolio returns over time

Select an answer and check it