Assessing the performance of an investment portfolio can be accomplished with either returns-based measures or holdings-based measures.

Question:

Assessing the performance of an investment can be accomplished with either returns-based measures or holdings-based measures. What are the major advantages and major disadvantages of each approach to performance measurement?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...