Chapter 7 CAIA Flashcards
Benchmarking and Performance Attribution
Benchmarking
Benchmarking, often referred to as performance benchmarking, is the process of selecting an investment index, an investment portfolio, or any other source of return as a standard (or benchmark) for comparison during performance analysis. Benchmarking is typically performed by investors and analysts external to an investment pool for the purpose of monitoring performance.
Chambers, Donald R.; Anson, Mark J. P.; Black, Keith H.; Kazemi, Hossein. Alternative Investments: CAIA Level I (Wiley Finance) (p. 159). Wiley. Edición de Kindle.
Peer benchmarks
Peer benchmarks are based on the returns of a comparison or peer group. The peer group is typically a group of funds with similar objectives, strategies, or portfolio holdings.
Chambers, Donald R.; Anson, Mark J. P.; Black, Keith H.; Kazemi, Hossein. Alternative Investments: CAIA Level I (Wiley Finance) (p. 160). Wiley. Edición de Kindle.