This difference between the portfolio return and the benchmark return is known as the active return.

There are several methods for calculating portfolio returns and performance.

Models here deal with asset prices, market movements, portfolio returns and the like.

Dispersion is a measure for the statistical distribution of portfolio returns.

For example, one might want to choose the portfolio return having the lowest variance for a given expected value.

The portfolio return may be defined as where and in a well-diversified portfolio.

And the 0.2 percent annual charge can be a drag on long-term portfolio returns.

If and are uncorrelated, the variance of portfolio return is .

The variance of the portfolio return is given by:

Investors should focus on total portfolio returns, he said, instead of immediate interest and dividend payments.