Got it all figured out, except Yield Component. How does this show up in the calculations? Neither CFAI nor Schweser has an example.

What yield component? There’s Currency Selection, Market Selection, and Security Selection. I don’t see where yield fits in.

I think the monster problem at the end of the global attribution reading has a calc for the yield component as part of the solution. I haven’t taken the time to figure out how they treat the interest that’s already accrued at the start of the period (I assume it’s treated as part of the initial market value). God help me if a table that size shows up on the exam.

It won’t - it’s too lengthy for an exam question, and I have not come across anything like that in the 6 Schweser exams I took or the 2300 QBank questions I did or the old CFAI exams. I’ll take my chances and not worry about this one.

LOL it won’t be on the exam Max. Yield is simply breaking down what you got in regard to your bonds (it’s a further delineation of the return).

Agree. Just like TooOld4This, I’m too old for this. If something that size shows up, I get up and walk out…

I think you would have a mass exodus; you can be our Moses.

lol…yeah, the parting of the red tape…

pimp Wrote: ------------------------------------------------------- > What yield component? > > There’s Currency Selection, Market Selection, and > Security Selection. I don’t see where yield fits > in. there is also currency contribution which isn’t the same as currency selection

Isn’t currency contribution a risk measure? Performance attribution is used to breakdown the compenents - and there’s only 3: Currency Selection, Security Selection, and Market Selection.

Anyone notice that there’s two ways to calculate currency contribution, depending on the information given? I’ve seen it to be the portfolio weight times the difference between the base return less the local market return of the underlying, as well as the spot rate times the weight difference.

Wrong. There is currency allocation and curreny contribution Just like there is market allocation and market contribution. They are two different calculations.

What are the formulas? RealWarriorsOnlyPlease Wrote: ------------------------------------------------------- > Wrong. > > There is currency allocation and curreny > contribution > > Just like there is market allocation and market > contribution. > > They are two different calculations.