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Not a fair take, you should only be comparing with the rest of the industry. Different industries have to price in different markets and risks.

• JumpCrisscross 3y ago
  > Not a fair take, you should only be comparing with the rest of the industry The S&P 500 isn't a fair comparison, but the Treasury one is. That's the risk-free rate.
  • KRAKRISMOTT 3y ago
    Then take the ten year yield, not the short term 5 months yield, you are comparing with the benefit of hindsight which is not viable for any financial analysis.
    • JumpCrisscross 3y ago
      > take the ten year yield, not the short term 5 months yield The ten-year yield was closer to 6% when Barra took the helm. That's much worse! The point of the comparison is that the return she delivered over her ten-year term was analogous to that which an investor demanded to lend to the U.S. government for a grand total of five months. It's driving home the terribleness of the return within the context of her hiring: she has failed to return anything close to GM's cost of capital. > you are comparing with the benefit of hindsight which is not viable for any financial analysis It's totally valid for evaluating a manager!