Module 5 Comprehensive Assessment: Part D: Portfolio Monitoring

Compare time-weighted returns with money-weighted returns for a portfolio that had the following performance:
– Year 1: +20% return, $100,000 beginning value
– Year 2: -10% return, $50,000 additional investment at beginning of year
– Year 3: +15% return, no additional investments

Explain performance attribution analysis and describe how it helps evaluate portfolio management effectiveness.

Compare calendar-based rebalancing with threshold-based rebalancing and recommend an approach for a tax-sensitive investor.