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What is Batting Average?

Batting Average A performance metric used in investment management to measure the ratio of successful (outperforming) investment decisions to total decisions, typically over a defined review period. Widely employed in performance attribution and manager skill evaluation (CFA Institute, GIPS).

Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

How is “Batting Average” Used in Practice?

The manager’s batting average of 0.60 indicates that 60% of his investment picks outperformed their respective benchmarks.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

What is Batting Average?

A performance metric used in investment management to measure the ratio of successful (outperforming) investment decisions to total decisions, typically over a defined review period. Widely employed in performance attribution and manager skill evaluation (CFA Institute, GIPS).

Where can I learn this term for free?

Termify is a 100% free professional English app that teaches Batting Average and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.

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