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Reading 42 Market Allocation question
Im seeing 2 different ways of calculating this but I think both will get the same answer and I’m hoping someone can confirm this for me.
Looking at pg 205 reading 42 market allocation is calculated as market over/under weight * rate of return of specific market allocation
but on pg 213 it is calculated as market over/under weight * (rate of return of specific market allocation - total rate of return)
I believe either will work but not seeing well defined formula…hopfully my expalation is not too confusion but its from example 4 and example 6 of reading 42. |
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