Investors always are interested in evaluating the performance of their portfolios. It is both expensive and time consuming to analyze and select securities for a portfolio, so an individual, company, or institution must determine whether this effort is worth the time and money invested in it.

 Investors managing their own portfolios should evaluate their performance as should those who pay one or several professional money managers. In the latter case, it is imperative to determine whether the investment performance justifies the service’s cost.