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Personal Financial Planning
16. CHAPTER 12-C: MUTUAL FUNDS/Performance Measures
16. CHAPTER 12-C: MUTUAL FUNDS Illustration
Syllabus Slides

Performance Measures

01.Core Concepts

• Jensen’s alpha • Absolute measure of performance • Measures portfolio’s actual return in excess of (or deficient to) portfolio’s expected return • Sharpe ratio • Relative measure of performance • Uses standard deviation as risk measure • Treynor ratio • Relative measure of performance • Uses beta as risk measure