Performance measures must align with portfolio use and features. Avoid Sharpe and similar ratios due to flaws; consider alternatives like trimmed alpha, median returns, and value at risk. CAGR is ...

Numerous measures have been proposed to gauge the performance of active management. Unfortunately, these measures can be gamed. Our article shows that gaming can have a substantial impact on popular ...

I’ve spent over 25 years in the financial advisory profession but recently had a startling realization about investment performance. During a friendly debate with a friend who manages a small-cap ...

The trading effect measures a portfolio manager's effectiveness by comparing their portfolio returns to that of a chosen benchmark. The trading effect measures a portfolio manager's effectiveness by ...

Richard Rosen is a financial planner and an expert in writing about financial planning topics. He has 20+ years of experience as a CFP®. Andy Smith is a Certified Financial Planner (CFP®), licensed ...

A simple test of adding gold and/or bitcoin to a stock and bond portfolio highlights key differences in risk and reward associated with these alternative assets. A backtest that adds bitcoin to a ...

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. This forward-looking methodology provides investors with an innovative ...

Note: This article is part of Morningstar’s Guide to Saving for Retirement. An earlier version appeared on Jan. 28, 2015. Anyone who's ever gotten lost while traveling in an unfamiliar city or foreign ...

After the scandal erupted over the creation by Wells Fargo employees of more than 2 million bogus bank accounts, for which customers were charged over $2.5 million in unwarranted fees, the bank's CEO ...