Curriculum Reading 23 exhibit 23. Can someone please tell me what this kind of graph is called and how to interpret it?
It’s a waterfall chart. And if you’ve done readings in order you’ve seen them in asset allocation already and other places. It tells you the level of active risk for certain allocations among active managers. In asset allocation reading see exhibits 28, 15, 14.
Thanks, how do you interpret the last area on the right ?
I don’t know what you mean…the weights are the y-axis. Active risk is on the x-axis and the charts legend is on the right in that little box. Just tells you what the shades mean.