Allocation effects L3 2020 curriculum

[fungyinvest]

What is the correct formula for Allocation effects? I am confused between (w - W)b and (w - W)(b - B).

[avannoord]

Equity-Brinson model

Hello Just 5 more days for the exam and I still don’t know when to use Brinson vs BHB? So, Brinson model is Allocation effect= (Wpi-Wbi) * Rbi BHB Allocation effect= (Wpi-Wbi) * (Rbi-Total Rb) Am I correct? Can someone please please clarify?

[aparnake]

check the replies on my original post…you will get the answer