# SS#16

After a nice lunch time review, I want to say I own 90% of it! Goliath is almost down!!

bigwilly Wrote: ------------------------------------------------------- > After a nice lunch time review, I want to say I > own 90% of it! Goliath is almost down!! If you’re are talking about the currency math, that is a beast! Congratulations David! If it’s domestic returns, I’ll give you a small pat and we’ll pray thats what they ask us on the exam.

anyone else skipping that global math? the cost benefit is just not there.

asdffdsa Wrote: ------------------------------------------------------- > anyone else skipping that global math? the cost > benefit is just not there. its totally worth it. simple plugging in the figures in the formula. considering more than half the confusions in l3 end in an impasse , its easy marks for just remembering the formulas

Its EASIER if you do a table. It lays everythign out nicely and its in front of you. I still have to work on the Currency Allocation piece which is the Portfoli Currency Contribution but then the Mkts portion is added…

Awsome!!!

I have a way of memorizing this global performance attribution stuff. The currency allocation part I got down. The market and sector allocations can be confusing. I just sing a little song to myself that goes something like this “Market Rb, Security Wp”. Basically, Market Allocation = Rbjf(Wpj - Wbj), and Security Allocation = Wpj(Rpjf - Rbjf).

^you keep singing

bips Wrote: ------------------------------------------------------- > its totally worth it. simple plugging in the > figures in the formula. > considering more than half the confusions in l3 > end in an impasse , its easy marks for just > remembering the formulas Agreed. There is nothing nebulous about this stuff. There is no subjectivity involved. It is straight plug and chug as long as you know the formulas. This could very easily be a 10-15 point essay question or 6-9 points in the PM that you can lock down. All you have to do is memorize the formulas and the points are yours. I would memorize this stuff over most lists.

yup i plan on memorising these …if these do show atleast i might get some points for getting the formula right … do we need to indicate what each component in the formula stands for on the exam ? eg: Rpjf - Return on the portfolio for asset j in foriegn country and so on for each component ??

I would say that if you have the correct subscripts, that would be adequate.

It’s great that all of you remember this stuff! I still have some troubles when it comes to attribution with “global” benchmark (when the weights in the benchmark not = to weights in portfolio and you need to add all contributions to the return of the benchmark) as the currency attribution in this case get confusing… any help? But at least I got how to calculate currency attribution in simple case (Rdr - Rlr) and very much remember the formulas needed to calculate market, selection and market/selection attribution parts. I just use the graph- no remembering the formula …| Rpj|-----------|------------| …| …|Selection|…both…| …| Rbj|-----------|------------| …| …| B.mark…|…Market| …|-----------|------------|-------- …RB…Wbj…Wpj

Rbj

pimp Wrote: ------------------------------------------------------- > be confusing. I just sing a little song to myself > that goes something like this “Market Rb, Security > Wp”. Basically, Market Allocation = Rbjf(Wpj - > Wbj), and Security Allocation = Wpj(Rpjf - Rbjf). Sweet. I turned your trick into something I can remember, although it’s certainly not true for my team… “We’re in the market for a running back.” Market RB

Here’s another one for Security Wp: “I will Secure you With Pleasure” frisian Wrote: ------------------------------------------------------- > pimp Wrote: > -------------------------------------------------- > ----- > > > be confusing. I just sing a little song to > myself > > that goes something like this “Market Rb, > Security > > Wp”. Basically, Market Allocation = Rbjf(Wpj - > > Wbj), and Security Allocation = Wpj(Rpjf - > Rbjf). > > Sweet. I turned your trick into something I can > remember, although it’s certainly not true for my > team… > > “We’re in the market for a running back.” > > Market RB