complication in multiperiod attribution

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?


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

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…