CFAI Curriculum, volume 6, page 148. I am not sure how following incremental value contributions are calculated in exhibit 6 using data from exhibit 3&5. Asset category: 6,272,658 Benchmark: 502,989 Investment managers: 25,580 I am able to calculate incremental return contributions for these categories with given formulae but I am unable to calculate value contributions. I am calculating value contribution of asset category: Sum[0.75*(186,419,405+950,000)*(0.0404-0.0031)+0.25*(186,419,405+950,000)*(0.0256-0.0031)] = 6,292,612 Can someone please explain what I am doing wrong? Thanks.
I am also finding it confusing how the value contributions are calculated in this example.
Can anyone help?
There is a little footnote #20 at the bottom which says don’t attempt it yourself because we’re not giving you all the details of weighted cash flows. Its a trick example