A Portfolio Performance Measurement Technique That Decomposes the Return of a Manager's

question 84

Multiple Choice

A portfolio performance measurement technique that decomposes the return of a manager's holdings to a predetermined benchmark's returns and separates the difference into an allocation and selection is called

• A) Immunization analysis.
• B) Performance attribution analysis.
• C) Tactical rankings.
• D) Convexity utilization.
• E) Duration matching attrition.

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Definitions:

Decision Maker

An individual or entity responsible for making choices or decisions, often in a business or organizational context.

Simple Events

Fundamental events that cannot be decomposed into simpler components, representing a single outcome of a random experiment.

Simple Events

Fundamental events that cannot be broken down into simpler components within the context of a probability experiment.

Experiment

A procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.