complication in multiperiod attribution

CFA Level III Portfolio Management
#1

There are two complications indicated in schweser considering multiperiod active return measurement

1-with no active managemet in second period, the active period in first period will compound at benchmrk return in second period…WHY IS THIS A COMPLICATION

2-Value of portfolio in first period will impact measured active return in the second period…SO WHAT? what’s the intuiton here?

Thanks

#2

Would not bother too much about multiperiod attribution… Isn’t this part of material marked as optional?

#3

unfortunately not, it’s core…but you are right may be I should focus more elsewhere like horrible PM indv. and PM inst. investors. that’s where they kick in the balls…