Attribution Quiz difference, management, determine, compound, between

ASSet_MANagemen

“To determine the fund’s excess return over several periods, we compound the fund’s single-period returns and compound the benchmark’s single-period returns. The difference between the two would be the total excess return attributable to active management.”

correct or incorrect. Provide reasoning with your answer

strikethree

seems correct. It's the excess returns over single periods that you cannot compound, but total returns should get you there.

IAmNeil

correct chi paul

infinitybenzo

Chi Paul is correct. The answer is correct.

It is from Schweser's Mock. I got it wrong

Zestt

cfaboston28 Wrote:
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> Chi Paul is correct. The answer is correct.
>
> It is from Schweser's Mock. I got it wrong


Gotcha; the wording is a little funny as they talk about excess returns at first and then go on to describe total returns.