Model, Hypothetical, and Backtested Performance — Best Practices

  1. Poor
  2. Satisfactory
  3. Good
  4. Very Good
  5. Excellent

Average: 4 (20 ratings)

Investment Performance Measurement Feature Articles
February 2009 | Vol. 2009 | No. 1
Source: CFA Institute
David D. Spaulding, CIPM Steven W. Stone


The use of theoretical performance, such as performance of a model portfolio, is not an uncommon practice, but little guidance exists concerning its use. In this article, we will address the issues concerning the use of theoretical performance, summarize the regulatory implications and risks of using such presentations, and finally suggest best practices and appropriate disclosures.

View more information

Credits · About the CE Program
0 CE (including 0 SER) Manage CE Credits

People who viewed this page also viewed:

Asset Allocation (2017)
CFA Institute: Refresher Readings
Managing Individual Investor Portfolios (2018)
CFA Institute: Refresher Readings
Basics of Portfolio Planning and Construction (2018)
CFA Institute: Refresher Readings

Loading ...