[Autom. eng. transl.] This work presents the main methods of evaluating the performance of an investment in financial instruments. The basic principle that is common to all the methods presented below is based on the valuation and discounting of flows coming from the investment at a specific rate; however, given the peculiarities that characterize each financial instrument, the methods of performance evaluation relating to an investment in debt securities, equity securities and UCIs, such as investment funds, will be presented separately later in this chapter. As regards the evaluation of the return on debt securities, different methodologies will be proposed, highlighting the peculiar differences between the gross and net returns between the ex-ante expected returns and the actual ex-post returns. With reference to capital securities, different valuation methods will be presented which are based on the calculation of the theoretical price of the instruments based on certain assumptions relating to the future development of corporate figures such as profits, dividends and the respective growth rates. The methodology for evaluating performance is also illustrated in the case in which the object of the investment is not a single financial instrument, but a portfolio consisting of a variety of instruments that differ from each other in terms of expected returns and risk levels . In this way it is possible to study the contribution of diversification for the purpose of assessing the risk-return level of financial assets. Finally, the main ex-post valuation methods of the performance of collective investment savings organizations are illustrated with the use of some particularly widespread indicators.
|Translated title of the contribution||[Autom. eng. transl.] The return on investment activities|
|Title of host publication||Economia degli intermediari finanziari|
|Editors||ALBERTO BANFI, MASSIMO BIASIN, MARCO ERCOLE ORIANI, GIANMARIO RAGGETTI|
|Number of pages||40|
|Publication status||Published - 2011|
- strumenti finanziari