Why have they not used the formula given in Schweser to calculate currency selection? Schweser’s formula is WjpCjp - WjbCjb

It is the same formula which mkt weights are identical between the portfolio and benchmark. WjpCjp - WjbCjb given that Wjp = Wjb, therefore: Wjp (Cjp - Cjb)

James@Houston Wrote: ------------------------------------------------------- > It is the same formula which mkt weights are > identical between the portfolio and benchmark. > > WjpCjp - WjbCjb > > given that Wjp = Wjb, therefore: > > Wjp (Cjp - Cjb) I remember that the weights of the benchmark were not given (mentioned) in this question, this can be misleading or causing confusion. This kind of vagueness in exam question is a big problem.

I struggled with this q as well. Easiest way to look at it is that there qre no benchmark weights given in the problem. Put 0 for BW and you will get the correct answer using that formula.

thanks a lot