mp3bu

I don't see a correct answer, because you cannot simply compound each year's excess return. The excess return in year 1 must be compounded against the benchmark return in year 2 and added the to excess return in year 2 compounded against the portfolio return in year 1. This would give you the 2 year true excess return. It does not seem like the consultant did this. Also, for a given year, you can sum the currency effect, security selection effect, and market allocation effect in order to get the excess return in that given year. So, I don't see anything wrong with how the consultant calculated the attribution. Maybe I am missing something, but I would have said:

D. Excess return calculation was INCORRECT and Attribution calculations were CORRECT.