(Foreword: I’ve searched this topic and I know the difference between the two formulas) In Schweser Concept Checkers question 3C, it asks to compute the market allocation effect for Portfolio G: Market Allocation Effect (pg 150) = (wp-wb)(rb,-rb[i]) BUT: The Schweser answer instead uses the Market Allocation CONTRIBUTION, found on page 140. Market Allocation Contribution: (wp-wb)(rb) Can anyone please help reconcile? Am I overthinking this? I had to pull an all-nighter last night so I’m a little zonked. Much thanks!
the results is same