Quantitative Investment Concepts and Measures of Investment Returns
Free CFP Exam lesson in Investment Planning. 19 min read, ~2,824 words.
Arithmetic mean = forecast single periods; geometric mean = actual compound growth. Geometric is always less than or equal to arithmetic. TWR = manager performance (strips cash flows); DWRR/IRR = investor experience (includes cash flows). R-squared 0.70 = Treynor (beta); R-squared < 0.70 = Sharpe (std dev). This single check...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- D.30
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