Reading 31_Execution of Portfolio Decisions_Market-adjusted Implementation Shortfall
Why do we have to subtract the expected return of the asset from the implementation shortfall?
What are we measuring here? What does the market-adjusted implementation shortfall means? How should we interpret the measure?
Besides, why the execution was more favourable than expected if we have a negative market-adjusted implementation shortfall?
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.