Bond Portfolio Performance Evaluation management, security, include, sector

prashantsahni

Four components of bond portfolio performance evaluation include; Interest rate management effect, sector/quality management effect, security selection effect and trading effect. How many of you think we need to memorize formulas for each one of these?

ajpheif16

You don’t need to memorize formulas… Just know how they are calculated… There was a question (Correct Or Incorrect Statement) on 2009 Mock.
The guy in the vignette was describing how to derive those incremental return effects and you has to agree or not…

scr879

The curriculum doesn’t include the formulas, just know the general idea behind each of the components.