Evaluating Portfolio Performance

Hey guys/girls,

I just got to SS17 and I remember reading in one of the posts that there are some differences between Schweser and CFAI for this topic. I think it was mostly fomula differences not the reading. I searched and cant find the post before proceeding wanted to ask for some advice. Is the Schweser section enough for this topic or should I use the CFAI books for this topic, also if only some formula(s) are different can someone point me to the post they are listed in.


the differences are that the pure sector allocation portion in micro attribution is (Wjp-Wjb) x (Rjb - Rb) whereas in global attribution it is just (Wjp-Wjb) X (Rjb) – that is the second part of the equation for global decomp does not subtract the overall benchmark return from the benchmark return on asset (or market) “j”

Also the security selection portion in micro attribution is Wjb (Rjp-Rjb) whereas in global it is Wjp (Rjp-Rjb) … so micro attribution uses benchmark as the weight in determing security outperformance relative to the benchmark, whereas global uses portfolio weight. To me it makes more sense to use benchmark… meh.

I want the answer too…it relates to currency?