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Basic Question 1 of 2

Which measure is the best to use to evaluate and compare the investment skill of asset managers?

A. Gross return
B. Net return
C. After-tax return
Check Answer Next Q Print

User Contributed Comments 4

User Comment
michlam14 to clarify, when referring to Gross return for fund manager: how do we account for the commission in the trading of instruments in the portfolio incurred by the fund manager when they are trading on the investor's behalf? I am assuming as an investor, the gross return would have already accounted for the comission paid to brokers for the execution of trades by the fund manager?
johntan1979 No, gross is before any deduction, including fees, expenses and taxes.
khalifa92 Return
- Trading fees
Gross Return
- non-trading fees
Net return
khalifa92 its a portfolio manager to control trading fee's (costs).
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

calculate and interpret major return measures and describe their appropriate uses

CFA® 2025 Level I Curriculum, Volume 1, Module 1.