NISM 21B Portfolio Managers Exam Notes

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  • Performance Parameters: Risk and return define success.
  • Rate of Return: Arithmetic, geometric, time-weighted.
  • Arithmetic Return: Simple average of periodic returns.
  • Geometric Return: Compounded return over periods.
  • Time-Weighted Return (TWRR): Eliminates cash flow effects.

NISM 21B Portfolio Managers

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