I think I was taking a Shcweser exam and it asked for Implementation shortfall, Not all the components but rather just the final number… Anyway they did not include the explicit costs . So If my question, If they just ask for implementation shortfall we do not take into consideration the Commissions etc?

No explicit cost should be taken into consideration for total implementation shortfall.

s23dino - you’re mistaken. Explicit costs must be taken into consideration when one calculates implementation shortfall. Implementation shortfall takes into account explicit and implict costs by definition. If you exlcude comissions that means you only consider implict costs in your calculation.

Hey MGG, Where was this question?? Thanks.