So on a perf attribution essay Q, I answered by calculating market selection component using the CFA method. Currency component as: home country currency return - foreign currency return and Security selection return as: Actual HC return - Currency component - market selection component all numbers were correct. Would I get full credit from graders even if I didn’t use the standard formulas?
Yes. You got the right answers. *Joey just took possessed my body for a brief second.
which standard formulas? everything u said is correct HC return = Local return + Currency Component + Security selection + Asset Allocation + Market Return if weights are the same (as they were i believe) then asset allocation would be 0
cool, thanks… It just didn’t “look” like the guidline answer…
that’s the Q9/07 one, I did it with the same method, much easier with less than 3 min finished the Q…