____ refers to the identification of sources of returns for a portfolio or security over a particular evaluation interval of time.
A) Reward to volatility
B) Performance attribution
C) Price relatives
D) Value weighting

Question

Quizplus · Accepted Answer

Performance attribution is the process of identifying the sources of returns for a portfolio or security over a particular evaluation interval of time. It breaks down the return into various components like market return, sector allocation decisions, security selection decisions, etc. This helps in evaluating the performance of the portfolio manager and improving investment strategies. Reward to volatility refers to the risk-adjusted return, price relatives are used for comparing the prices of securities, and value weighting refers to the method of assigning weights to securities based on their market value.

____ Refers to the Identification of Sources of Returns for a Portfolio