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When Portfolio Performance Is Measured, What Type of Benchmark May

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Essay

When portfolio performance is measured, what type of benchmark may be used
Explain what Roll meant by benchmark error.


Definitions:

Reciprocal Determinism

A psychological principle indicating that an individual's actions are simultaneously shaped by and shape their own characteristics and the surrounding milieu.

Self-serving Bias

The common tendency to attribute positive events to one's own character but attribute negative events to external factors.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states.

Extraversion

A personality trait marked by outgoingness, high energy, and positive emotions towards social interactions.

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