Is anyone punting certain topics that just don’t stick in their brains and hoping they aren’t tested? For me, I just can’t remember the three micro-performance attribution calculations or grinold-kroner. I think it’s better to strengthen other areas than to spend the time trying to learn those.
It’s new so may come up and if it does, you’ll be able to answer it when 80% wouldnt. I recall the same in Level 1 when a new topic came up. I didn’t cover it in past mocks but luckily read over the chapter the day before. Really made me feel confident as I walked out knowing that one piece of information!
Asset selection - Which is their SAA…what they would do if passive investing.
Benchmark - Active manager Benchmark (think of misfit risk calc)
Manager return - What the manager did (Active management)
Allocation effect - If the Fund sponsor did everything as they said they would, this would be 0. But they don’t so this is the plug to make everything else add up.