when calculating the returns attributable to within-sector (i.e. security selection) do I use the benchmark weights or the portfolio weights?
maybe i'm just losing my mind but i feel like i've seen it both ways across qbank, secret sauce, CFAI, and schweser notes.作者: nannan66 时间: 2011-7-11 19:14
mcap11 Wrote:
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> Portfolio Weight of Sector (Portfolio return of
> Sector - BM return for that Sector)
I believe it's benchmark weight.
NO EXCUSES作者: cityboy 时间: 2011-7-11 19:14
its benchmark weight作者: Windjammer 时间: 2011-7-11 19:14
The reason you are confused is because it is presented two different ways.
In normal decomp, it is benchmark
in GLOBAL decomp, it is portfolio weight.
The formula is exactly the same other than this.作者: Chuckrox 时间: 2011-7-11 19:14
the most annoying thing is that even though i stone cold memorized a formula that is a page wide when written down and can recite it from memory on command like fkn rainman, I still usually miss the problems related to this the way they ask them.
ugh.作者: susana 时间: 2011-7-11 19:14
Oops my drawing got all messed up but hope you get the idea作者: zwjy 时间: 2011-7-11 19:14
he is saying there will be no more than 1 item set on it, which is likely true. In actuality, they might ask 1-2 questions on it specifically.作者: Iginla2011 时间: 2011-7-11 19:14
SS17 is way too detailed oriented for only 5% of the exam, especially reading 47 where we have to calculate the currency contribution, cap gains, etc
Might have to just hope for some lucky guesses on this part of the exam
