Should have tagged under previous post: The answer key calculates the individual contribution for security selection for each country component as [(LC return, portfolio) - (LC return, benchmark)] * sector weight, portfolio These are summed to get the total contribution of security selection. But, I thought the “Within Sector Selection” formula uses the benchmark weights? (see “Performance Evaluation, Attribution” readings) Thanks
I think you are confused micro performance attribution with global performace evaluation. Within sector selection in micro perforance attribution uses benchmark weight. Security selection contriuton in global perforamance evaluation uses portfolio weight.
thanks john… got it. that’s exactly what I did.