Time-weighted return is a performance statistic that measures the performance of a dollar invested in a fund over a complete measurement period, independent of cash flows into and out of the fund. This chapter steps through the calculation of time-weighted return and discusses approximations that may be required due ... click here for more details.

This chapter provides a simple explanation of the compounding and averaging aspects of multiperiod return calculation. Easy to follow examples are used throughout the chapter to demonstrate the process of generating annualized returns from shorter periods. The chapter ends with an demonstration of how the difference between money-weighted ... click here for more details.

This chapter considers the elements of investments that complicate performance measurement, namely management fees and expenses, taxes and currency exchange rates. The chapter provides simple explanations of how to adjust return calculations to account for these additional costs of investing, and focuses particularly on the calculation of mutual fund ... click here for more details.

Given that investors have many options available (even accounting for specific objectives and constraints), understanding how to measure relative returns of different investments is an important component of performance measurement. This chapter discusses performance comparison techniques and calculations, the construction and use of relevant peer groups, and the construction ... click here for more details.

This chapter serves as an introduction to the second part of this book which covers risk measurement. The chapter is a simple, equation-free discussion of the definition of risk and the different possibilities for measuring risk; that is, absolute risk, relative risk and downside risk.

This chapter is ideal for anyone who wants a general understanding of risk calculations at a conversational level without a rigorous statistical presentation. The chapter builds a general understanding of risk as the amount of variability from the average, then discusses simple measurement techniques such as considering the range ... click here for more details.

This chapter continues the introduction to risk started in chapter 9, and again is ideal for anyone who wants a general understanding of risk calculations at a conversational level without a rigorous statistical presentation. This chapter discusses the two primary flaws with using standard deviation as a measure ... click here for more details.

***From the book*** How does the electricity industry function in simple terms? There are the traditional physical functions: generation (production), transmission, system operations, distribution; and there are merchant functions such as retailing to final customers and wholesale power procurement. Traditionally, the entire industry has had its prices set for it by ... click here for more details.

***From the book*** This chapter describes the four pillars of the short-term trading arrangements, and how they relate to the specific ways in which electricity is different; we set out the preferred trading model - including a spot market integrated with operations and run by the system operator - and why ... click here for more details.

***From the book*** This chapter describes in more detail how the integrated model works, and in particular, the role of spot market prices in the integrated trading model. We describe how prices must be set in the spot market so as to induce generator entry when it’s needed, and the way ... click here for more details.