title: Asset pricing and portfolio performance: Models, strategy, and performance metrics
author:  Robert A. Korajczyk 
description: Editor Robert A Korajczyk is a Professor of Finance at Kellogg Graduate School of Management, USA
zlib_text: Reading 35 
  Execution of Portfolio 
  Decisions 
  by Ananth Madhavan, PhD, Jack L. Treynor, and Wayne H. Wagner 
  Ananth Madhavan, PhD, is at BlackRock (USA). Jack L. Treynor (USA). Wayne H. Wagner 
  (USA).  
  Managing Investment Portfolios: A Dynamic Process, Third Edition, John L. Maginn, CFA, 
  Donald L. Tuttle, CFA, Jerald E. Pinto, CFA, and Dennis W. McLeavey, CFA, editors. © 
  2007 CFA Institute. All rights reserved. 
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  LEARNING OUTCOMES 
  The candidate should be able to: 
  a. compare market orders with limit orders, including the price and execution 
  uncertainty of each; 
  b. calculate and interpret the effective spread of a market order and contrast it to the 
  quoted bid–ask spread as a measure of trading cost; 
  c. compare alternative market structures and their relative advantages; 
  d. explain the criteria of market quality and evaluate the quality of a market when given 
  a description of its characteristics; 
  e. explain the components of execution costs, inclu