Zestt

djinn, that's what I wanted to say, these are two different things: either you look at portfolio return or excess portfolio return (which would need 2 different formulas).

goodman: you give me a pass guarantee cfai won't test it? Any other materials I can throw away and not learn? ;-)

Maybe they won't test the difference between formula a and b, but I am quite certain that attribution analysis will be some part of the test, cominbed with currency effects this would make a good catch-all question.

If you calc only the excess part and substract benchmark return from each allocation, the result will be 12%, which is the excess return in my example.