Relative return objectives express the required return relative to a stated benchmark. A good benchmark should be investable i.e., an investor should be able to replicate it.
The return objective may be stated before or after fees and on a pre- or post-tax bais.
It could also be expressed in terms of a required return, that is, the amount an investor needs to earn over the investment horizon to meet a specified future goal.
The portfolio manager must ensure that the client's return objective is realistic in light of her tolerance for risk